# Section 2(v): Person Resident in India — Individual

## The 182-Day Rule

An individual is a Person Resident in India (PRI) if:

> The person has resided in India for MORE THAN 182 days during the preceding financial year.

Note: It is the PRECEDING FY, not the current FY. Residential status is determined by past stay.

## Exclusions (NOT a PRI even if 182+ days)

An individual is NOT a PRI if the person:

### Category A — Has GONE OUT of India OR STAYS OUTSIDE India for:

1. Taking up employment outside India, OR

2. Carrying on business or vocation outside India, OR

3. Any other purpose where circumstances indicate intention to stay outside India for an uncertain period

### Category B — Has COME TO India OR STAYS IN India for purposes OTHER than:

1. Taking up employment in India, OR

2. Carrying on business / vocation in India, OR

3. Staying for an uncertain period

## Simplified Decision Rule

A person becomes PRI the moment they come to India for:

Employment
Business / vocation
Uncertain period stay

→ Irrespective of the number of days of stay in preceding FY.

Conversely, a person becomes PROI the moment they leave India for the same three purposes — regardless of days of stay.

## Important Clarifications

### 1. Students Going Abroad for Higher Studies

RBI has clarified: A student leaving India for higher studies is treated as PROI. Reason — their stay abroad is for an uncertain period, and they often take up part-time employment to fund expenses.

### 2. Citizenship is IRRELEVANT

Unlike FERA, an Indian citizen may be PROI and a foreign citizen may be PRI. Only stay and purpose matter.

### 3. Status is NOT for a Year (Unlike Income Tax)

Residential status under FEMA is determined at the point in time of the transaction. It can change mid-year based on intent and movement. Under the Income Tax Act, status is determined for the entire previous year.

## Visual Decision Tree

```

Did the person stay > 182 days in preceding FY?

+-----+-----+

YES NO

| |

Tentative Tentative

PRI PROI

| |

Did they leave Did they come

India for to India for

employment/ employment/

business/ business/

uncertain uncertain period?

period?

| |

If YES → PROI If YES → PRI

```

Worked example

### Example 1

Example 1: Mr. A, an Indian citizen, stayed in India for 300 days in preceding FY. On 1 April, he leaves India to take up employment in Dubai. From that date, he becomes PROI — irrespective of 300 days stay.

### Example 2

Example 2: Mr. B, a US citizen, comes to India on 1 April for employment with Infosys. He has never stayed in India before. From the date of arrival, he is PRI — citizenship and prior stay are irrelevant.

### Example 3

Example 3: Ms. C, an Indian student, leaves India on 1 August to pursue an MBA in London (duration 2 years, with intent to seek employment thereafter). She is treated as PROI from the date of departure as per RBI clarification.

### Example 4

Example 4: Mr. D, an Indian citizen, goes on a 6-month tourist trip to Europe. His stay abroad is for a FIXED purpose (tourism) with definite return. He remains PRI — Category A exclusions do not apply.

⚠️ Common exam mistakes

Calculating the 182 days from the CURRENT FY — it must be the PRECEDING FY.
Treating Indian citizens as automatically PRI — citizenship is irrelevant under FEMA.
Applying Income Tax 'previous year' concept — under FEMA, status can change mid-year.
Forgetting that students going abroad for higher studies are treated as PROI per RBI clarification.
Treating a person going abroad on tourism / fixed-term medical treatment as PROI — they remain PRI as the stay is for a definite period/purpose.
Counting 182 days exactly as PRI — the law requires MORE THAN 182 days (i.e., 183+ days).

Bare-Act text Section 2(v)(i) · Foreign Exchange Management Act, 1999 · click to expand

"Person resident in India" means— (i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include— (A) a person who has gone out of India or who stays outside India, in either case— (a) for or on taking up employment outside India, or (b) for carrying on outside India a business or vocation outside India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period; (B) a person who has come to or stays in India, in either case, otherwise than— (a) for or on taking up employment in India, or (b) for carrying on in India a business or vocation in India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period.

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Section 2(v) - Person Resident in India (Individual)

Worked example

⚠️ Common exam mistakes