# Deemed Resident [Section 6(1A)]
This is an anti-abuse provision targeting wealthy Indian citizens who arrange their affairs so that they are not liable to tax in any country ("stateless" for tax purposes).
## The Rule
Notwithstanding anything in Section 6(1), an individual is deemed to be a resident in India if ALL of the following are met:
1. He is an Indian citizen, AND
2. His total income (other than income from foreign sources) exceeds ₹15 lakh during the RPY, AND
3. He is not liable to tax in any other country or territory by reason of domicile, residence, or any other similar criteria.
## Meaning of "Income from Foreign Sources"
Income that is excluded from the ₹15 lakh test:
- Income accruing or arising outside India — except income from a business controlled in India or a profession set up in India; and
- Income not deemed to accrue or arise in India.
## Meaning of "Liable to Tax"
- Refers to an income-tax liability on a person under the laws of a specific country.
- Includes individuals who have been subsequently exempted from such liability under that country's laws.
## Key Observations
- Only an Indian citizen can be a deemed resident.
- A PIO who is not an Indian citizen cannot be a deemed resident under 6(1A).
- Stay in India is NOT necessary to be a deemed resident.
- A Deemed Resident is always RNOR (Resident but Not Ordinarily Resident).