Residential Status II Income Tax

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Book Link which we will refer during our studies
https://amzn.to/3WMYuDK

1. Categories of Residential Status in India
In India, an individual can be classified into one of the following categories:

Resident and Ordinarily Resident (ROR)
Resident but Not Ordinarily Resident (RNOR)
Non-Resident (NR)
Resident (Resident and Ordinarily Resident - ROR)
An individual is considered a resident in India if they satisfy any of the following conditions:

Stay in India for 182 days or more during the financial year.
Stay in India for 60 days or more during the financial year and 365 days or more in the preceding four financial years.
Once the individual qualifies as a resident, they are further classified as:

Ordinarily Resident (ROR): If the individual has been a resident of India in at least 2 out of the 10 previous years and has stayed in India for at least 730 days during the last 7 years.
Not Ordinarily Resident (RNOR): If the individual does not satisfy the above conditions.
Non-Resident (NR)
An individual is treated as a non-resident if they do not meet any of the above conditions for being a resident.

2. Tax Implications Based on Residential Status
Resident and Ordinarily Resident (ROR)

Global Income Taxable: All income, whether earned in India or abroad, is taxable in India.
Deductions and Exemptions: Eligible for all deductions and exemptions under Indian tax laws.
Resident but Not Ordinarily Resident (RNOR)

Income Earned in India is Taxable: Income earned in India and income derived from a business controlled or set up in India is taxable.
Income Earned Abroad: Only income earned from a business controlled or set up in India is taxable; other foreign income is not taxable in India.
Non-Resident (NR)

Only Indian Income Taxable: Only the income earned in India or received in India is taxable.
No Tax on Global Income: Income earned outside India is not taxable in India.
3. Determination of Residential Status
Physical Presence: The number of days an individual is physically present in India is the primary criterion.
Special Provisions for Indian Citizens and PIOs: For Indian citizens or persons of Indian origin (PIO) who visit India, the 60-day requirement is extended to 182 days under certain circumstances.