Concept of Residence in India – Section 6 of Income Tax Act, 1961

September 27, 2016, 0 comments, on Advance Rulings - AAR

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For the purposes of this Act,—
(1) An individual is said to be resident in India in any PY, if he—
(a) is in India in that year for a period or periods amounting in all to 182 days or more ; or
(b) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.
Explanation.—In the case of an individual,—
(a) being a citizen of India, who leaves India in any PY
as a member of the crew of an Indian ship or
for the purposes of employment outside India,
the provisions of sub-clause (b) shall apply in relation to that year as if for the words “60 days”, occurring therein, the words “182 days” had been substituted
(b) being a citizen of India, or a person of Indian origin, who, being outside India, comes on a visit to India in any PY, the provisions of sub-clause (b) shall apply in relation to that year as if for the words “60 days”, occurring therein, the words “182 days” had been substituted.
(2) A HUF/ firm/ other AOP is said to be resident in India in any PY in every case except where during that year the control and management of its affairs is situated wholly outside India.
(3) A company is said to be resident in India in any PY, if—
(i) it is an Indian company ; or
(ii) during that year, the control and management of its affairs is situated wholly in India.
(4) Every other person is said to be resident in India in any PY in every case, except where during that year the control and management of his affairs is situated wholly outside India.
(5) If a person is resident in India in a PY relevant to an AY in respect of any source of income, he shall be deemed to be resident in India in the PY relevant to the AY in respect of each of his other sources of income.
(6) A person is said to be “not ordinarily resident” in India in any PY if such person is—
(a) an individual who has been a non-resident in India in nine out of the ten PYs preceding that year, or has during the seven PYs preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less; or
(b) a HUF whose manager has been a non-resident in India in nine out of the ten PYs preceding that year, or has during the seven PYs preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less.

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