Who is a Non-Resident?

Who is a Non-Resident?

A person is resident in India if he fulfills any of the basic conditions:

Basic Condition: The individual is in India for

1. 182 days or more at any time during the relevant previous year; or

2. 60 days or more during the relevant previous year and 365 days or more during 4 years immediately proceeding the relevant previous year.

However, in (2) above 60 days have been replaced by 182 days for:

1. Indian citizens who leave India for employment abroad or as a member of crew of an Indian ship;

or Persons of Indian Origin who visits India during the previous year.

Persons of Indian origin:

An individual is deemed to be person of Indian origin:

1. If She/he has at any time held an Indian passport; or

2. She/he or any one of his parents or any one of his grand parents were a citizen of India; or

3. She/he is not of Indian origin but spouse is an Indian citizen or is a person of Indian origin. (Bank accounts and investments should be held jointly with the spouse)

If none of the basic conditions is satisfied a person will be Non-Resident in India for the relevant previous year.

If a person is resident in Pakistan or Bangladesh then he cannot be a resident in India even if the above criteria are satisfied.

Residential Status under FEMA

The transactions of a resident even outside India are covered under FEMA. Under Income Tax Act residential status is determined on the basis of number of days of stay in India but it is not so in case of FEMA. Here residential status is determined on the basis of intension of the person.

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