Who is a non-resident?
Under the existing provisions of the Income Tax Act, 1961, the taxable entities are broadly divided into three groups, viz. Individual, Company, and all other persons such as Hindu Undivided Family, Firm, Association of Persons, etc. These taxable entities are divided into three categories depending upon their residential status. These categories are: • Resident • Resident but not ordinarily resident; and • Non-resident As already explained above, the benefit of seeking advance ruling is available only to a non-resident. The resident status of each group of the taxable entities are, in brief, as under: INDIVIDUAL: An individual is a resident in India in any previous year: • If he has been in India during the previous year for 182 days or more. • If the individual (not being one of the categories mentioned in para 3 below) has been in India during the previous year for less than 182 days but has been in India for an aggregate of 365 days or more in the four years preceding the previous
Non-resident status, for exchange control purposes, is determined by the nature of the stay abroad. Duration of stay in India is of limited significance. If one is employed, has a business or pursues a vocation one is a non-resident. If one has business interests in India and abroad and travel frequently, resident status would depend on the length of stay in India. To be eligible for retaining Indian residency, the stay in India must be more than one hundred and eighty two days during the course of the preceding financial year. Who is a Non-Resident Indian? You are considered a NRI if you are a non-resident and an Indian citizen, a non-resident foreign citizen and of Indian origin. Top How do I know if I am a person of Indian origin? If you are a foreign citizen and want to open a bank account or invest in Indian shares and securities, you are considered to be of Indian origin if, You have at any time in your life held an Indian passport You or any one of your parents or any one of you
