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Microlesson · 5-min read

Basic Residential Status of Individuals — Basic Conditions [s.6(1)]

# Basic Residential Status of Individuals — Section 6(1)

An individual's residential status determines the scope of total income taxable in India. There are three broad categories: Resident & Ordinarily Resident (ROR), Resident but Not Ordinarily Resident (RNOR), and Non-Resident (NR).

## Basic Conditions (B) — s.6(1)

An individual is Resident if they satisfy ANY ONE:

1. Stay in India ≥ 182 days during the relevant previous year, OR

2. Stay in India ≥ 60 days in the relevant PY AND ≥ 365 days during the 4 preceding previous years.

If neither condition is satisfied → Non-Resident.

## Counting & Meaning of 'Stay'

AspectRule
Territorial watersStay within 12 nautical miles of the coastline (incl. on a ship/boat in territorial waters) counts as stay in India
ContinuityStay need not be continuous
PlaceNeed not be at the usual residence / business / employment place
Counting daysBoth date of arrival and date of departure are counted
CitizenshipResidential status ≠ citizenship / place of birth / domicile; one can be resident in multiple countries

## Exceptions to Condition 2 (B2 not applicable)

The following are treated as resident only if stay in the relevant PY is ≥ 182 days (the 60-day rule does not apply):

1. An Indian citizen who leaves India during the PY (a) for the purpose of employment outside India, or (b) 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 PY.

Worked example

### Example 1

60-day rule disabled for departing employee: An Indian citizen leaves India on 15.9.2025 for employment abroad, having stayed 168 days in India during PY 2025-26. Normally 60 days + 365 days in 4 prior years would make him resident, but exception 1 applies: he is resident only if stay ≥ 182 days. Since 168 < 182, he is a Non-Resident.

### Example 2

Counting arrival and departure: An individual arrives in India on 1.10.2025 and leaves on 31.3.2026. Both 1.10 and 31.3 are counted; total stay = 182 days, so the 182-day basic condition is satisfied → Resident.

⚠️ Common exam mistakes

  • Applying the 60-day condition to an Indian citizen leaving for employment abroad or as a crew member of an Indian ship, or to a visiting Indian citizen/PIO — only the 182-day test applies to them.
  • Excluding the date of arrival or date of departure when counting days — both are included.
  • Confusing residential status with citizenship or domicile.
  • Forgetting that stay within territorial waters / on a ship counts as stay in India.
Reference: 6(1)
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