Residential Status under Section 6 – Resident, Not Ordinarily Resident and Non-Resident
- An individual is resident if in India for 182 days or more in the tax year, or for 60 days or more in the year and 365 days or more in the four preceding years.
- The 60-day test becomes 120 days for Indian citizens or persons of Indian origin visiting India with India-sourced income above ₹15 lakh.
- A resident is taxed on global income; a non-resident only on income received in or arising in India (section 5).
Your residential status in a tax year decides which income is taxed in India. Section 6 of the Income-tax Act, 2025 contains the tests. Residential status is worked out year by year.
Resident individual: two tests (section 6(2))
- You are in India for 182 days or more in the tax year; or
- You are in India for 60 days or more in the year and for 365 days or more in the four preceding years.
If you meet either test, you are resident. If you meet neither, you are a non-resident (unless the deemed-resident rule applies).
When the 60-day test does not apply
- Indian citizens who leave India during the year as a member of the crew of an Indian ship, or for the purposes of employment outside India (section 6(3)). They need 182 days to become resident.
- Indian citizens or persons of Indian origin who live abroad and come on a visit to India (section 6(4)). If their income other than foreign-source income is above ₹15 lakh, the 60 days becomes 120 days (section 6(5)).
Deemed resident (section 6(7))
An Indian citizen is deemed resident if he is not liable to tax in any other country by reason of domicile, residence or a similar criterion, and his total income other than foreign-source income exceeds ₹15 lakh. Such a person is "not ordinarily resident" under section 6(13)(c).
Not ordinarily resident (RNOR)
A resident individual is "not ordinarily resident" if he was a non-resident in nine out of the ten preceding tax years, or was in India for 729 days or less in the preceding seven tax years. Another case covers citizens or persons of Indian origin with income above ₹15 lakh who stayed 120 to 181 days (section 6(13)(b)).
Other persons
- An HUF, firm or association of persons is resident unless control and management is wholly outside India (section 6(9)).
- A company is resident if it is an Indian company or its place of effective management is in India (section 6(10)).
What is taxed in India (section 5)
| Status | Income taxed in India |
|---|---|
| Resident and ordinarily resident | All income: received or deemed received in India, arising in India, and arising abroad |
| Not ordinarily resident | Income received or arising in India; foreign income only if it comes from a business controlled in India or a profession set up in India |
| Non-resident | Only income received (or deemed received) in India or arising (or deemed to arise) in India |
Example
A teacher on study leave abroad is in India for 150 days in a tax year and was in India for 400 days in the four preceding years. Test 2 is met (60 days and 365 days), so she is resident for that year. If she had been in India for only 100 days in the four preceding years, she would fail both tests and be a non-resident (unless a deeming rule applies).
Residential status also affects deductions: for example, the rebate in section 156 and the disability deduction in section 154 are available only to residents.
Still have a question? Ask TAXBADI – get an answer from the Act, Rules and forms, with the exact sections cited.
More guides
- Arrears of Salary – Relief under Section 157, Rule 73 and Form No. 39 (Old 89(1))
- Capital Gains Tax Rates 2026-27 – Shares, Mutual Funds and Property under the New Act
- Clubbing of Income – Section 99: When Spouse or Minor Child Income Is Added to Yours
- Filing Income Tax Return Late – Fee under Section 428 and Interest under Sections 423 to 425
This guide is for general information and is not tax advice. Tax figures are before health and education cess unless stated. The law and the official notifications are the final authority – see our Disclaimer. Found a mistake? Tell us.