How Resident / Non Resident status relevant for Income Tax in India
Who is a resident?
Section 2 (42) of Income Tax Act “resident” means a person who is resident in India within the meaning of section 6 of Income Tax Act 1961 ;
One of the condition is that If an individual stays in India for 182 days or more in a year, he / she is treated as resident in that year regardless of his citizenship.
If the stay is less than 182 days, he /she is a non-resident.
[ Section 6 of Income Tax Act ]
How is resident / non-resident status relevant for levy of income tax?
In case of resident individuals and companies, their global income is taxable in India.
However, non-residents have to pay tax only on the income earned in India or from a source / activity in India.