Taxability of income in India depends upon the residential status of an individual which is categorized as:
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Resident and Ordinarily Resident (ROR)
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Resident Not Ordinary Resident (RNOR)
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Non-Resident (NR)
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To read about amendments made by Finance Act, 2020; click here.
Points to Remember:
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Residential status applies for one FY. Accordingly, it may be necessary to evaluate residential status on a yearly basis.
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Residential status as per the Income-tax Act differs from residential status as per FEMA. Accordingly, it may be necessary to evaluate the residential status under both laws.
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​In the following cases, a person may be NR if he is present in India for less than 182 days:
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Being a citizen of India and leaving India as a member of the crew on a ship of the Indian Merchant Navy
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Being a citizen of India or a Person of Indian Origin leaving India for the purposes of employment outside India
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Being a citizen of India and a NR, returning to India for the purposes of visit.
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