Residential Status of an Individual: Basic Conditions: 1.

The assessee should have stayed in India during the previous year (PY) for 182 days or more OR 2. The assessee should have stayed in India during the PY for 60 days or more and should have stayed in India during the four preceding PYs for 365 days or more. In the 2nd condition stated above, the 60 days shall be replaced by 182 days, in the following circumstances: If the assessee, being an Indian Citizen, leaves India during the PY for employment purposes If the assessee, being an Indian Citizen or a person of Indian origin has come back to India for a visit If the assessee, being an Indian Citizen, leaves India in an Indian Ship Any assessee satisfying any one of the Basic conditions shall be called as a Resident Any assessee not satisfying both of the Basic conditions shall be called as Nonresident Additional Conditions (To be applied for a Resident assessee only): 1. The assessee should have been a resident in India (satisfying any one of the Basic conditions) in

atleast 2 out of 10 preceding PYs

AND 2. The assessee should have stayed in India for 730 days or more during the 7 preceding PYs. A Resident shall be called an Ordinarily Resident if he satisfies both the additional conditions. A Resident shall be called a Not Oridinarily Resident if he satisfies one or none of the additional conditions.

Problem 1: Mr X was in India during past 10yrs. For the following no of days: a) PY 2010-11 09-10 08-09 07-08 06-07 05-06 04-05 03-04 02-03 01-02 00-01 Stay in India 150 40 180 190 230 280 170 320 365 365 365

a) Find out his residential status for the AY 2011-2012

b) Mr X left India for the first time in his life on 15 September 2007 for employment purposes. During the past 3 yrs he has visited India for 90 days (PY 08-09), 175 days (PY 09-10), & 102 days (PY 10-11). Find the residential status for the AY 2010-11 and 2011-12.

Answer
a) Mr X satisfied the second of the basic conditions (that he should have stayed for 60 days or more in the previous yr and 365 days or more during the preceding four PYs)

So he is resident Indian. He also satisfied the additional conditions that the person should be a

resident in

India for 2 out of 10 preceding yrs. (by remining in India for more than 182 days during more than two previous years) and the condition that he should have stayed in India for 730 days or more during the 7 preceding PYs.(being in India for more than 730 days during the said period) So he is Resident and ordinarily resident.
b) He has not satisfied the basic conditions , since he stayed for less than 182 days in PY 2009-10 and 2010-11 (being an Indian citizen coming back to India for a short visit). Hence, he is a Nonresident in both the years.