Every Person who is residing outside India had the query about the meaning of Non Resident India(NRI) or who are NRI for Income Tax purpose. Section 2(30) of the Income Tax Act,1961 which define the Meaning of NRI “non-resident” means a person who is not a “resident”, and for the purposes of sections 92,93 and 168, includes a person who is not ordinarily resident within the meaning of clause (6) of section 6.
An individual is said to be Resident in India in any previous year if he satisfied one of the following basic conditions –
-
He has been in India in the previous year for 182 days or more
-
He has been in India in the precious year for 60 days or more and 365 days or more during 4 years immediately preceding the previous year
If any one of the following Basic condition is satisfied then an Individual is treated as “Resident” in India if not satisfied an Individual is treated as “Non-resident” in India
An Individual is “ordinary Resident” or “Non-resident” in India
If an Individual is Resident in India, then the following both additional conditions are satisfied for “ordinary resident”
-
He has been resident in India in at least 2 out of 10 previous years immediately preceding the relevant previous year.
-
He has been in India for 730 days or more during 7 years immediately preceding the relevant previous year.
If the both additional condition and one Basic are satisfied, an Individual is treated as “Resident and Ordinary resident” in India and
Meaning of Not Ordinary Resident
A person is said to be “not ordinarily resident” in India in any previous year if such person is—
(a) an individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less; or
(b) a Hindu undivided family whose manager has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less.]