Information about Individual in the free online Tamil dictionary. Expression ‘not liable to tax’ does not necessarily imply that person ‘should not pay tax’; a person is deemed liable to tax if other contracting state has subjected such person to tax, whether or not tax is actually payable. 15 lakhs from sources in India and from business controlled from India or profession set up in India and the total stay in India during the year is 120 days or more but less than 182 days then such individuals would be considered as NORs. Thus, classification of individual as Resident & RNOR is an important criterion. Same principle applies for an Indian Citizen who leaves India as a member of the crew of an Indian ship. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. Meaning of Residence. In other words those Indian citizens whose total Income is more than Rs. However, such person is termed as not ordinary resident therefore he is liable to pay tax only on the income accrue or received in India & foreign income from business controlled from India or profession setup in India. In India the residential status of a person plays a vital role in determining the taxability of income of any person. Section 6 of the Income Tax Act, 1961 divides the assesses into four categories i.e. c) Further the explanation to Section 6(1) provides relaxation with respect to number of days mentioned in Section 6(1)(b), whereby in place of 60 days, 182 days shall be substituted. Only tax is leviable on income accrued or received in India or income accrue outside India from a business controlled from India or from a profession that is setup in India. unable to leave india before 31st March, then his period of stay between 22 to 31 March 2020 shall not be taken into account. Join our newsletter to stay updated on Taxation and Corporate Law. An individual is said to be resident in India in Previous Year, if he satisfies any one of the following conditions: i. Thus, to cover up such loophole the Government of India has introduced an amendment through the Finance Act, 2020. Thus “deemed resident” may not have immediate tax implication due to being considered as NOR if he visits India for less than 182 days but he will lose the benefit of NOR if his stay in India is for182 days or more as the condition of being a Non Resident for 9 years out of the preceding 10 years may not be fulfilled. SECTION 2(v) provides that a person residing in India for more than 182 days during the preceding financial year is a person resident in India. Clause (1A) to Section 6 has also been inserted by Finance Act, 2020, whereby an Indian citizen having specified total income1 of more than Rs.