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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tax Provisions for Special Cases

Under the Income-tax Act, which of the following best describes the residential status 'Resident but Not Ordinarily Resident' (RNOR) for an individual?

A Resident but Not Ordinarily Resident is a person resident in India for the year who was non-resident in nine of the ten preceding years, or stayed 729 days or less in the preceding seven years. Citizenship alone does not decide this status.

  1. AA person who is resident in India in the year but has been non-resident in 9 out of the 10 previous years, or stayed in India for 729 days or less in the preceding 7 yearsCorrect
  2. BA person who has stayed in India for fewer than 60 days in the year
  3. CA person who is a citizen of India but lives abroad permanently
  4. DA person who has been resident in India in every one of the last 10 years

Explanation

An individual who is resident in the year is RNOR if he was non-resident in 9 of the 10 preceding years, or his stay in the preceding 7 years was 729 days or less. The other options describe either non-residents or ordinary residents, or confuse citizenship with residence.

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