As per section 6, an individual may be (a) resident and ordinarily resident inIndia, (b) resident but not ordinarily resident in India, or (c) non-resident in India.
BASIC CONDITIONS TO TEST AS TO WHEN AN INDIVIDUAL IS
RESIDENT IN INDIA - Under section 6(1) an individual is said to be resident in
1. He is in India in the previous year for a period of 182 days or more
2. He is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year
ADDITIONAL CONDITIONS TO TEST AS TO WHEN A RESIDENT INDIVIDUAL IS ORDINARILY RESIDENT IN INDIA - Under section 6(6), a resident individual is treated a “resident and ordinarily resident” in India if he satisfies the following two additional conditions —
Additional condition (i)
He has been resident in India in at least 2 out of 10 previous years [according to basic condition noted above] immediately preceding the relevant previous year.
Additional condition (ii)
He has been in India for a period of 730 days or more during 7 years immediately preceeding the relevant previous year. In brief it can be said that an individual becomes resident and ordinarily resident in India if he satisfies at least one of the basic conditions [i.e., (a) or (b)] and the two additional conditions [i.e., (i) and (ii)].
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