# Special Residential Provisions — 120-Day Rule & Deemed Resident
## A. Special Provision for High-Income Visiting Indians [s.6(1)]
An Indian citizen or PIO visiting India is treated as Resident if BOTH are satisfied:
Condition on Stay (any ONE):
- Stay ≥ 182 days in the relevant PY, OR
- Stay ≥ 120 days in the relevant PY AND ≥ 365 days in the 4 preceding PYs, AND
Condition on Income:
- Total income (other than income from foreign sources) exceeds ₹15 lakh during the relevant PY.
Key consequence: If a person becomes resident via the 120 days + ₹15 lakh route, he is ALWAYS RNOR (this differs from the 182-day route).
## B. Deemed Resident [s.6(1A)]
Notwithstanding s.6(1): an individual is deemed resident if:
- He is an Indian citizen, AND
- Total income (other than income from foreign sources) exceeds ₹15 lakh in the relevant PY, AND
- He is not liable to tax in any other country/territory by reason of domicile, residence or similar criteria.
## Meaning of 'Income from Foreign Sources'
- Income accruing/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 under the laws of a specific country.
- Includes persons subsequently exempted from such liability under that country's laws.
## Observations on Deemed Resident
- Only an Indian citizen can be a deemed resident.
- A PIO (non-citizen) can NOT be a deemed resident u/s 6(1A).
- Stay in India is NOT necessary to be a deemed resident.
- A deemed resident is always RNOR.