Page 35 - Jignyasa-June 2020

III. Flowchart for Residential Status of Individuals
VII. FLOWCHART FOR RESIDENTIAL STATUS OF INDIVIDUALS *
Start here
Stay in India ≥ 182 Yes Resident
days in PY

No Yes
NR in India in atleast 9
Indian Citizen + left
India as member of Stay in India out of 10 preceding
Is Indian Citizen or PYs
PIO who has come No crew of Indian ship No ≥ 60 days in PY and OR
to India for a visit or for employment ≥ 365 days in Stay in India ≤ 729
purposes outside preceding 4 PYs days in preceding 7
India
PYs
Yes Yes No Yes No
Indian Citizen + not
Stay in India liable to tax in other
≥ 120 days in PY and country by reason
≥ 365 days in No of domicile /
preceding 4 PYs residence / other
similar criteria
Yes No
Yes
Total Income# RNOR
in PY > 15 Lakhs No NR ROR
Yes

Note: This flow chart has been prepared based on our understanding of the law and about intentions of the legislature.
# Excludes foreign income i.e .income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India)

* Flowchart Courtesy : Thanks to Parth Hiten Shah

IV. Illustrations
Sr. Scenario Solution
No.
1 Mr. A, an Indian Citizen, who leaves • Mr. A’s stay in India for PY 2020-
India for the first time on 31st July 21 is 122 days. Hence, he does
2020 for employment in Country X. not satisfy the first primary
condition of 182 days under
His income for the PY 2020-21 is as Section 6(1).
follows:
• In relation to second primary
• Indian Income = INR 16,00,000
condition, Mr. A, being an
• Foreign Income = equivalent to Indian Citizen leaving India for
INR 16,00,000 employment purposes, would be
eligible for the relaxation provided
He is not liable to tax in any country. vide Explanation 1(a) under
What is his residential status for PY Section 6(1), where 60 days’
2020-21? stay is replaced by 182 days and
hence, he does not satisfy the
second primary condition as well.

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