Residential Status

Residential status has been defined in section 6[1] of the Income-tax Act, 1961. This section covers the residential status of every person as stated in section 2(31)[2] of the act. The Individual and Hindu Undivided Family (HUF) has divided the residential status as resident and non-resident and the resident is further divided as a resident and ordinarily resident (ROR) and resident but not ordinarily resident (RNOR). While firm, an association of person, local authorities and company are only divided as resident and non-resident.

Residential Status


The resident basically depends upon the number of days its stays in the previous year. The residential status of the individual mainly depends upon the fulfillment of any of the conditions mentioned below:

  1. That the individual was present in India for the 182 days in the previous year ( according to the new Union budget it is 120 days); or
  2. That the individual has stayed 365 days during the immediate 4 previous years of the relevant previous year and in the relevant previous year, that individual has stayed for 60 days.

There are many exceptions to this rule where only 182 days rules will be applied. It is applied in the cases where Indian citizen leaves the India in the relevant previous member as the crew member; or the Indian citizen or Indian origin engaged outside India for employment or business or profession or in any other vocation.


In the HUF, Karta is the most important to determine the residential status. If a HUF has the control and management (head and brain) in India, wholly or partially, it is a resident. And if the control and management of the HUF are located wholly outside India will be non-resident.

Firm, association of person, local authority and artificial judicial person

These persons will be declared resident in India if their control and management are wholly or partly located in India. If the control and management are wholly situated outside India will be declared non- resident.


A company will be declared as the resident in India when any one of the condition is fulfilled:

  1. That the company is the Indian company (s. 2(26))[3]
  2. That the place of effective management is located in India for that particular previous year.



The resident can be either be resident and ordinarily resident (ROR) or resident but not ordinarily resident (RNOR). When the individual is proved as a resident then two conditions are fulfilled to be declared ROR. The conditions are

  1. That the resident was resident in any 2 out of the last 10 preceding relevant years; and
  2. The resident stayed in India for seven years preceding relevant years and stayed for a total of 730 days or more.

If both the conditions are fulfilled then that resident is ROR or else the resident is RNOR.


If the HUF is declared resident, then for declaration for ROR and RNOR, the karta’s condition is checked (conditions are the same as that of the individual). If the karta fulfills both the conditions, then the HUF is ROR else the HUF is RNOR.

Symbiosis Law School

[1] Residential Status under Income Tax Act,1961 – Revisited !, , (last visited Jan 23, 2021).

[2] Person [Section 2(31)] – Definations under I.Tax., , (last visited Jan 23, 2021).

[3] Ramdeo Kakra, Section 2(26) Income Tax: Indian Company – Meaning, CA Club (2019), (last visited Jan 23, 2021).

3,760 thoughts on “Residential Status”

  1. Cool website!

    My name’s Eric, and I just found your site – – while surfing the net. You showed up at the top of the search results, so I checked you out. Looks like what you’re doing is pretty cool.

    But if you don’t mind me asking – after someone like me stumbles across, what usually happens?

    Is your site generating leads for your business?

    I’m guessing some, but I also bet you’d like more… studies show that 7 out 10 who land on a site wind up leaving without a trace.

    Not good.

    Here’s a thought – what if there was an easy way for every visitor to “raise their hand” to get a phone call from you INSTANTLY… the second they hit your site and said, “call me now.”

    You can –

    Talk With Web Visitor is a software widget that’s works on your site, ready to capture any visitor’s Name, Email address and Phone Number. It lets you know IMMEDIATELY – so that you can talk to that lead while they’re literally looking over your site.

    CLICK HERE to try out a Live Demo with Talk With Web Visitor now to see exactly how it works.

    Time is money when it comes to connecting with leads – the difference between contacting someone within 5 minutes versus 30 minutes later can be huge – like 100 times better!

    That’s why we built out our new SMS Text With Lead feature… because once you’ve captured the visitor’s phone number, you can automatically start a text message (SMS) conversation.

    Think about the possibilities – even if you don’t close a deal then and there, you can follow up with text messages for new offers, content links, even just “how you doing?” notes to build a relationship.

    Wouldn’t that be cool?

    CLICK HERE to discover what Talk With Web Visitor can do for your business.

    You could be converting up to 100X more leads today!

    PS: Talk With Web Visitor offers a FREE 14 days trial – and it even includes International Long Distance Calling.
    You have customers waiting to talk with you right now… don’t keep them waiting.
    CLICK HERE to try Talk With Web Visitor now.

    If you’d like to unsubscribe click here