How Resident / Non Resident status relevant for Income Tax in India

By | December 2, 2017
(Last Updated On: December 2, 2017)

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.

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