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CA Intermediate · Taxation · Residential Status and Scope of Total Income

Meera, an Indian citizen, lives in Dubai and visits India during tax year 2026-27 for 150 days. Her total income from Indian sources exceeds Rs 15 lakh. In the four preceding tax years she was in India for 400 days in total, and in the previous seven tax years she was in India for 800 days. Her stay in India in the preceding 4 years is not in doubt. Which statement about her residential status for tax year 2026-27 is correct?

Meera is resident but not ordinarily resident. As an Indian citizen with Indian income above Rs 15 lakh, she becomes resident with 120 or more days in India and 365 or more days in the preceding four years. Since her stay is under 182 days, the law treats her as RNOR.

  1. AResident and ordinarily resident, since she is an Indian citizen
  2. BResident but not ordinarily resident, since she is an Indian citizen with Indian income above Rs 15 lakh whose stay is 120 days or more but under 182 daysCorrect
  3. CNon-resident, since she stayed less than 182 days
  4. DResident but not ordinarily resident under the rule that applies to a citizen who is not liable to tax in any other country

Explanation

An Indian citizen who visits India and has Indian-source income above Rs 15 lakh is resident only if stay is 120 days or more and 365 days or more in the preceding 4 years. Here 150 >= 120 and 400 >= 365, so she is resident. Because the stay is 120 days or more but under 182 days, the Act treats her as resident but not ordinarily resident. She is not ROR, since the condition for such a visiting citizen caps her at RNOR.

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