{"id":4688,"date":"2023-09-22T10:04:19","date_gmt":"2023-09-22T10:04:19","guid":{"rendered":"https:\/\/bdsadvisories.com\/?page_id=4688"},"modified":"2023-09-23T07:54:32","modified_gmt":"2023-09-23T07:54:32","slug":"residency-under-the-income-tax-act-1961","status":"publish","type":"page","link":"https:\/\/bdsadvisories.com\/index.php\/residency-under-the-income-tax-act-1961\/","title":{"rendered":"Residency under the Income Tax Act, 1961"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"4688\" class=\"elementor elementor-4688\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-168871a e-con-full e-flex e-con e-parent\" data-id=\"168871a\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ef05af3 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"ef05af3\" 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.elementor-divider-separator:before,.elementor-widget-divider--separator-type-pattern:not([class*=elementor-widget-divider--view]) .elementor-divider-separator{width:100%;min-height:var(--divider-pattern-height);-webkit-mask-size:var(--divider-pattern-size) 100%;mask-size:var(--divider-pattern-size) 100%;-webkit-mask-repeat:var(--divider-pattern-repeat);mask-repeat:var(--divider-pattern-repeat);background-color:var(--divider-color);-webkit-mask-image:var(--divider-pattern-url);mask-image:var(--divider-pattern-url)}.elementor-widget-divider--no-spacing{--divider-pattern-size:auto}.elementor-widget-divider--bg-round{--divider-pattern-repeat:round}.rtl .elementor-widget-divider .elementor-divider__text{direction:rtl}.e-con-inner>.elementor-widget-divider,.e-con>.elementor-widget-divider{width:var(--container-widget-width,100%);--flex-grow:var(--container-widget-flex-grow)}<\/style>\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-3246d63 e-con-full e-flex e-con e-parent\" data-id=\"3246d63\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;,&quot;background_background&quot;:&quot;classic&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-adf71e5 elementor-widget elementor-widget-text-editor\" data-id=\"adf71e5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<h2>\u00a0<\/h2><h2 style=\"text-align: center;\"><strong>Residency under the Income Tax Act, 1961<\/strong><\/h2><h4 style=\"text-align: center;\">NRI Taxation\u00a0<span class=\"breadcrumbs-separator\">\/<\/span>\u00a0<span class=\"post post-page current-item\">Residency under the Income Tax Act, 1961<\/span><\/h4><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-0ce9e71 e-con-full e-flex e-con e-parent\" data-id=\"0ce9e71\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d2499f9 elementor-widget elementor-widget-heading\" data-id=\"d2499f9\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h3 class=\"elementor-heading-title elementor-size-large\">Residency under the Income Tax Act, 1961<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-b71f38e e-con-full e-flex e-con e-parent\" data-id=\"b71f38e\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-57733b2 elementor-widget elementor-widget-text-editor\" data-id=\"57733b2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">According to the residency criteria outlined in the Income Tax Act, 1961, an individual can fall into one of the following categories:<\/span><br \/><span style=\"color: #000000;\">\u2022 Ordinary Resident (OR)<\/span><br \/><span style=\"color: #000000;\">\u2022 Resident but Not Ordinarily Resident (RNOR)<\/span><br \/><span style=\"color: #000000;\">\u2022 Non-Resident (NR).<\/span><\/p><p><span style=\"color: #000000;\">This determination is based on the individual&#8217;s duration of stay in India during both the current year and the preceding years.<\/span><br \/><span style=\"color: #000000;\">An individual is categorized as a resident for a specific year, which refers to the financial year for which the residency status is being assessed, if:<\/span><\/p><p><span style=\"color: #000000;\">\u2022 Their stay in India for that particular year exceeds 182 days; OR <\/span><br \/><span style=\"color: #000000;\">\u2022 Their stay in India for that particular year exceeds 60 days AND their cumulative stay in the 4 years immediately preceding that year exceeds 365 days.<\/span><br \/><br \/><span style=\"color: #000000;\">If neither of these conditions is met, the individual is classified as a &#8216;Non-Resident&#8217;.<\/span><br \/><span style=\"color: #000000;\">If either of the conditions mentioned above is fulfilled, the individual is classified as a &#8216;Resident.&#8217; Once this status is established, the next step is to determine whether they are an &#8216;Ordinary Resident&#8217; or a &#8216;Resident but not Ordinarily Resident.&#8217; This classification is based on the following criteria:<\/span><br \/><span style=\"color: #000000;\">\u2022 The individual has maintained Non-Resident status for 9 out of the 10 years immediately preceding the current year \u2013 indicating that the two residency criteria mentioned earlier were not met for 9 out of the last 10 years; OR <\/span><br \/><span style=\"color: #000000;\">\u2022 Their cumulative stay in India over the 7 years immediately preceding the current year does not exceed 729 days.<\/span><br \/><br \/><span style=\"color: #000000;\">If either of these conditions is met, the individual is classified as a &#8216;resident but not ordinary resident.&#8217; If neither condition is fulfilled, the individual is considered an &#8216;ordinary resident.&#8217;<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c022201 e-con-full e-flex e-con e-parent\" data-id=\"c022201\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a66702b elementor-widget elementor-widget-heading\" data-id=\"a66702b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-large\">New concept of deemed resident<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-25b861c e-con-full e-flex e-con e-parent\" data-id=\"25b861c\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-dd69193 elementor-widget elementor-widget-text-editor\" data-id=\"dd69193\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">An individual who is a citizen of India and has a total income, excluding income from foreign sources, surpassing INR 15 lakh rupees in the preceding year will be considered a resident in India for that year, provided they are not subject to taxation in any other country or jurisdiction due to their domicile, residency, or similar criteria. However, it&#8217;s important to note that these deemed resident provisions do not apply to individuals meeting the definition of &#8216;resident&#8217; as outlined earlier.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-074c94c e-con-full e-flex e-con e-parent\" data-id=\"074c94c\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-dbff304 elementor-widget elementor-widget-heading\" data-id=\"dbff304\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-large\">Taxability based on residential status<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-53ae5f8 e-con-full e-flex e-con e-parent\" data-id=\"53ae5f8\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a9a645f elementor-widget elementor-widget-text-editor\" data-id=\"a9a645f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">Understanding one&#8217;s residency status is crucial because it dictates the tax obligations in India. A resident is subject to taxation on their worldwide income, encompassing income generated both within and outside India. On the other hand, non-residents, not-ordinary residents, and deemed residents are only liable for taxes on income derived from sources within India.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>\u00a0 Residency under the Income Tax Act, 1961 NRI Taxation\u00a0\/\u00a0Residency under the Income Tax Act, 1961 \u00a0 Residency under the Income Tax Act, 1961 According to the residency criteria outlined in the Income Tax Act, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_canvas","meta":{"footnotes":""},"rishi__cb_customizer_meta":"","_links":{"self":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages\/4688"}],"collection":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/comments?post=4688"}],"version-history":[{"count":7,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages\/4688\/revisions"}],"predecessor-version":[{"id":4978,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages\/4688\/revisions\/4978"}],"wp:attachment":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/media?parent=4688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}