Taxation · Residential Status and Scope of Total Income

Residence of Individuals and Basic Conditions for CA Inter

Updated 4 October 2026 · Fact-checked

An individual is resident in India for a tax year if they stay in India for 182 days or more in that year, or for 60 days or more in that year and 365 days or more in the four preceding tax years. If neither test is met, they are non-resident. Some citizens and persons of Indian origin get a higher day limit (182 or 120 days) in the second test.

Understand Residence of Individuals and Basic Conditions

Residential status decides which of your income India can tax. A resident is taxed on income from anywhere in the world. A non-resident is taxed only on income connected with India. So you must fix residential status before you compute anything else.

Residential status is decided separately for each tax year. A person can be resident this year and non-resident next year. It depends only on physical stay in India, not on citizenship, domicile or where the person's family lives.

Under the Income-tax Act, 2025, the tax year is the 12-month period starting on 1 April and ending on 31 March (for example, 1 April 2026 to 31 March 2027). The old split into 'previous year' and 'assessment year' is gone. The income of a tax year is taxed for that same tax year. For a new business or source of income, the first tax year starts from the date of setting up and ends on the next 31 March. Read the 'previous year' in older material as the 'tax year' now.

An individual is resident if either basic condition is satisfied. First, stay of 182 days or more in the tax year. Second, stay of 60 days or more in the tax year and 365 days or more in the four tax years immediately before it. If neither is met, the individual is non-resident (subject to the deemed resident rule for citizens, covered under RNOR). The second condition needs both limbs together.

Two groups get a relaxation in basic condition 2. For an Indian citizen who leaves India during the tax year for employment outside India, or as a crew member of an Indian ship, the 60-day figure becomes 182 days.

For an Indian citizen or person of Indian origin who lives abroad and comes to India on a visit, the 60-day figure depends on Indian-source total income (leaving out foreign-source income). It becomes 182 days if that income is ₹15 lakh or less, and 120 days if it exceeds ₹15 lakh. In both cases the 365-day test in the four preceding tax years still applies.

Check this limit while applying condition 2, before you conclude on residence. Once the person is resident under a basic condition, they are further classified as Resident and Ordinarily Resident (ROR) or Resident but Not Ordinarily Resident (RNOR) using the additional conditions. The exception is a deemed resident citizen, who is RNOR without applying the additional conditions.

Key rules to remember

Basic condition 1: Stay in India in the tax year ≥ 182 days; Satisfying this alone makes the individual resident.
Basic condition 2: Stay in the tax year ≥ 60 days AND stay in the 4 preceding tax years ≥ 365 days; Both limbs must be met. The days need not be continuous.
Relaxation: employment abroad or crew member: For an Indian citizen who leaves India in the tax year for employment outside India or as crew of an Indian ship: 60 days is replaced by 182 days; Condition 1 is unchanged. Only condition 2 is affected.
Relaxation: visit to India: For an Indian citizen or person of Indian origin living abroad who visits India: 60 days is replaced by 182 days if Indian-source total income is ₹15 lakh or less, and by 120 days if Indian-source total income exceeds ₹15 lakh; The replaced limit applies within basic condition 2, so check it before concluding on residence. The 365-day test in the four preceding tax years still applies. Such a person may be RNOR.
Counting days: Day of arrival and day of departure both count as days in India; Stay in Indian territorial waters also counts.
Additional conditions (for ROR status): Resident in India in at least 2 of the 10 preceding tax years AND stay ≥ 730 days in the 7 preceding tax years; The person must have been resident, not merely present, in those years. If both are met the person is ROR. If either fails the person is RNOR. A deemed resident citizen is RNOR without this test.

How to solve Residence of Individuals and Basic Conditions questions

Use this order for any question on residence of an individual. It keeps you from missing a relaxation or a limb of a test.

1Write down the tax year asked, for example 1 April 2026 to 31 March 2027, and the four preceding tax years.
2Count the days of stay in India in the tax year. Count both the arrival day and the departure day.
3If the stay is 182 days or more, stop. The individual is resident under basic condition 1.
4If it is below 182, check whether the person is an Indian citizen or person of Indian origin who left for employment abroad, was crew of an Indian ship, or came on a visit. This decides which day limit applies in condition 2. The limit is 60 days for everyone else and 182 days for employment abroad or crew. For a visitor who is a citizen or person of Indian origin, it is 182 days if Indian-source total income is ₹15 lakh or less, and 120 days if it exceeds ₹15 lakh.
5Apply condition 2: stay in the tax year at or above the applicable limit AND at least 365 days in the four preceding tax years. If both are met, the person is resident. Otherwise the person is non-resident, unless the deemed resident rule applies. That rule covers an Indian citizen whose Indian-source total income exceeds ₹15 lakh and who is not liable to tax in any other country by reason of domicile or residence or any other criterion of similar nature. Such a person is deemed resident and is RNOR.
6If the person is resident under a basic condition, test the additional conditions (resident in 2 of 10 years, 730 days in 7 years) to classify as ROR or RNOR. A deemed resident citizen is RNOR without this test.
7Write the conclusion in one line with the figures: 'Since stay of __ days is below 182 and ..., the individual is __ for the tax year.'

Quickest way: Day-count shortcut for MCQs and written answers

When to use it: Use it when the question gives day counts for five tax years, or a date of departure or arrival, and you have little time.

Read the first sentence for the citizenship, what the person did (left for a job, visited India, or neither) and the Indian income if given. Note these, but do not pick a limit yet.
Check condition 1 first: is the stay 182 days or more? If yes, the answer is 'resident' and you can skip the rest. Most MCQs that give 182 or more days end here.
If the stay is below 182, now pick the condition 2 limit. It is 60 days for most people, 182 days for employment abroad or crew, and for a citizen or person of Indian origin visiting India it is 182 days if Indian-source total income is ₹15 lakh or less and 120 days if it is above ₹15 lakh.
If the stay is below 182 and also below that limit, condition 2 fails, so the person is non-resident, unless the deemed resident rule applies. That rule covers an Indian citizen with Indian-source total income above ₹15 lakh who is not liable to tax in any other country by reason of domicile or residence or any other criterion of similar nature. Such a person is deemed resident and is RNOR. You do not need to add the four preceding years.
Add the four preceding years only if the current stay clears the limit. If the total is 365 or more, resident. Otherwise non-resident.
In the written answer, show three lines: days in the tax year, the limit applied and why, and the four-year total. This earns the step marks even if one figure slips.
In MCQs with no negative marking, never leave a blank. Eliminate options that call someone resident despite a stay below the limit.

Common mistakes in Residence of Individuals and Basic Conditions

Applying the 60-day limit to an Indian citizen who left India for employment abroad in the tax year.
Students remember '60 and 365' and forget the relaxation for citizens leaving for work or crew service.
Fix: Check citizenship and purpose of travel first. For these persons, the second condition needs 182 days, so a stay below 182 days means non-resident.
Applying 60 days, or the wrong limit, to a citizen or person of Indian origin who is visiting India.
Students forget that the limit depends on Indian-source total income.
Fix: For such a visitor, use 182 days if Indian-source total income is ₹15 lakh or less and 120 days if it exceeds ₹15 lakh. The 365-day test in the four preceding tax years still applies.
Adding up the four preceding years but ignoring the 60-day (or other) limit in the current year.
A large four-year total looks decisive.
Fix: Condition 2 has two limbs joined by AND. A stay in the current year below the limit makes the person non-resident, whatever the four-year total.
Excluding the day of arrival or departure, or counting 'nights' instead of days.
Students treat days as 24-hour periods.
Fix: Count both the day of arrival and the day of departure as days in India.
Using the old terms 'previous year' and 'assessment year' and the old section numbers.
Older notes and coaching videos still use the 1961 Act wording.
Fix: Write 'tax year' throughout. For the May 2027 exam, answer under the Income-tax Act, 2025 only.
Deciding residence on citizenship, domicile or where the family lives.
Everyday meaning of 'resident' is confused with the tax meaning.
Fix: Only days of stay matter for the basic conditions. Citizenship matters only for the relaxations.
Stopping at 'resident' without saying ROR or RNOR when the question asks for the full status.
Students treat the basic conditions as the whole topic.
Fix: If the question asks for the residential status, test the additional conditions too.

Worked examples

Example 1

Mr. Raj, a foreign citizen, stayed in India for 150 days in the tax year 2026-27. His stay in the four preceding tax years was: 2022-23: 100 days, 2023-24: 120 days, 2024-25: 90 days, 2025-26: 80 days. Determine his residential status as an individual for the tax year 2026-27 on the basic conditions.

Show the solution

Condition 1: stay in 2026-27 is 150 days, which is below 182. Condition 1 is not satisfied.
Mr. Raj is a foreign citizen, so no relaxation applies. The limit for condition 2 is 60 days.
Condition 2, first limb: 150 days is at least 60 days. Satisfied.
Condition 2, second limb: stay in the four preceding tax years is 100 + 120 + 90 + 80 = 390 days, which is at least 365 days. Satisfied.
Both limbs are met, so condition 2 is satisfied.

Answer: Mr. Raj is a resident in India for the tax year 2026-27, since he satisfies basic condition 2 (150 days ≥ 60 and 390 days ≥ 365).

Example 2

Mr. Kumar, an Indian citizen, was in India from 1 April 2026 until 10 September 2026, when he left India for employment in Dubai. He returned only after the end of the tax year 2026-27. His stay in the four preceding tax years was more than 365 days in total. Determine his residential status for the tax year 2026-27 on the basic conditions.

Show the solution

Days in India: April 30 + May 31 + June 30 + July 31 + August 31 = 153 days. Add 10 days for 1 to 10 September, with the departure day counted. Total = 163 days.
Condition 1: 163 days is below 182. Not satisfied.
Mr. Kumar is an Indian citizen who left India during the tax year for employment outside India. So the 60-day limit in condition 2 is replaced by 182 days.
Condition 2: 163 days is below 182, so the first limb fails. The four-year total of more than 365 days does not help, because both limbs are required.

Answer: Mr. Kumar is a non-resident for the tax year 2026-27, since his stay of 163 days is below 182 days and condition 2 is not met.

Exam tips

Look at who the person is in the first line: foreign citizen, or Indian citizen or person of Indian origin. This one fact decides whether a relaxation applies.
Show the day-count working in a small list, month by month, and say that both arrival and departure days are counted. Examiners give marks for this working.
Always state the tax year in the form 2026-27 and use the word 'tax year'. Do not write 'previous year' or 'assessment year', and do not cite 1961 Act section numbers.
If the question says 'determine residential status', go on to ROR or RNOR after the basic conditions, and write a clear one-line conclusion.
In MCQs, test the 182-day limit first and the limit for relaxation cases second. Many wrong options are built by applying 60 days where 182 should apply.

Practice questions from Residential Status and Scope of Total Income

Residence of Individuals and Basic Conditions in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Residence of Individuals and Basic Conditions: frequently asked questions

Do the 182 days have to be continuous?

No. The days can be spread over the tax year in any number of visits. You add up all days of stay in India in that tax year.

Is the day I land in India and the day I leave counted?

Yes. Both the day of arrival and the day of departure are counted as days in India.

Does being an Indian citizen make me resident?

No. Residence for tax depends on days of stay in the tax year, not citizenship. Citizenship only matters for the relaxations, such as leaving for employment abroad or visiting India.

What replaced 'previous year' and 'assessment year' in the Income-tax Act, 2025?

The Act uses a single term, the tax year, which runs from 1 April to 31 March. The income of a tax year is taxed for that same tax year. You must use this term for the May 2027 exam onwards.

How do I decide between ROR and RNOR?

First confirm the person is resident under a basic condition. Then check the additional conditions: resident in India in at least 2 of the 10 preceding tax years, and stay of 730 days or more in the 7 preceding tax years. If both are met the person is ROR. Otherwise the person is RNOR. A deemed resident citizen is RNOR without this test.