# Basic Residential Status of an Individual [Section 6(1)]

Residential status decides how much of a person's income is taxed in India. The first step for an individual is to test the Basic Conditions.

## The Two Basic Conditions (B)

An individual is a Resident in India for the relevant previous year (RPY) if they satisfy ANY ONE of the following:

1. B1 — Stay in India for 182 days or more during the RPY, OR

2. B2 — Stay in India for 60 days or more during the RPY AND stay of 365 days or more during the 4 previous years immediately preceding the RPY.

> If neither condition is satisfied → the individual is a Non-Resident.

## Key Rules on Counting "Stay in India"

Aspect	Rule
Territorial waters	Stay within territorial waters (up to 12 nautical miles from the coastline) counts as stay in India — even stay on a ship/boat within these waters.
Continuity	Stay need not be continuous.
Place	Stay need not be at the usual place of residence, business, or employment.
Counting days	Both the date of arrival and the date of departure are counted as days in India.
Citizenship	Residential status is independent of citizenship, place of birth, or domicile. A person can be resident in multiple countries despite having only one domicile.

## Exceptions — When B2 Does NOT Apply

For the following individuals, condition B2 is switched off — they become resident only if their stay in the RPY is 182 days or more:

1. An Indian citizen who leaves India during the RPY:

for the purpose of employment outside India, or
as a member of the crew of an Indian ship.

2. An Indian citizen or Person of Indian Origin (PIO) who, being outside India, visits India during the RPY.

(Note: For visiting Indian citizens/PIOs there is a special carve-out using 120 days + ₹15 lakh income — covered separately.)

Worked example

### Example 1

Example — Counting arrival and departure days: Mr. A arrives in India on 1st January and leaves on 30th June of the same previous year. Both 1st January and 30th June are counted. His total stay therefore includes every day from arrival to departure inclusive. Since this exceeds 182 days he is a Resident under B1.

### Example 2

Example — B2 (60 days + 365 days): Mr. B stayed in India for 70 days in the RPY and for a total of 400 days across the 4 immediately preceding previous years. He fails B1 (less than 182 days) but satisfies B2 (≥60 days in RPY and ≥365 days in the preceding 4 years), so he is a Resident.

### Example 3

Example — Exception for employment abroad: Mr. C, an Indian citizen, leaves India on 15th August of the RPY to take up employment in Dubai, staying in India only 137 days. Because he left for employment, B2 does not apply and the 182-day test is used. As 137 days < 182 days, he is a Non-Resident.

⚠️ Common exam mistakes

Counting only one of the arrival/departure dates — both must be counted.
Forgetting that B2 has TWO limbs: 60 days in the RPY AND 365 days in the preceding 4 years; both must be met.
Treating the 60-day test as applicable to an Indian citizen who left India for employment or as crew of an Indian ship — for them only the 182-day test applies.
Confusing citizenship with residential status; an Indian citizen can be a Non-Resident and a foreign citizen can be a Resident.
Ignoring that stay within territorial waters (12 nautical miles) counts as stay in India.

Bare-Act text Section 6(1) · Income-tax Act, 1961 · click to expand

Section 6(1): An individual is said to be resident in India in any previous year, if he— (a) is in India in that year for a period or periods amounting in all to 182 days or more; or (c) having within the four years preceding that year been in India for a period or periods amounting in all to 365 days or more, is in India for a period or periods amounting in all to 60 days or more in that year.

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Basic Residential Status of an Individual — Section 6(1) Basic Conditions

Worked example

⚠️ Common exam mistakes