University · Income Tax Tools

What's your residential status under Section 6?

Walk the actual test chain — the 182-day and 60-day basic conditions, the 120-day rule for high-income citizens/PIO visiting India, the crew/employment-abroad carve-out, and the Section 6(1A) deemed-resident sweep — through to ROR, RNOR or NR, with every test shown, not just the answer.

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Your facts — the relevant previous year

Indian citizen or Person of Indian Origin (PIO)?

Travel / employment pattern this year

Days present in India — this year

Days present in India — preceding 4 years (aggregate)

Days present in India — preceding 7 years (aggregate)

Resident in how many of the preceding 10 years?

Total India-sourced income > ₹15 lakh?

Income other than from foreign sources — drives the 120-day rule and Sec 6(1A)

Liable to tax in any other country/territory?

By reason of domicile, residence, or a similar criterion — relevant only to Sec 6(1A)

Why this matters in an audit

Get the test chain right not the day count.

Residential status drives the entire scope of taxation for the year, and it can change year to year for the same individual — an RNOR return one year, ROR the next. CORAA's engagement workspace keeps the test, the day-count evidence and the filing position together, so the classification is defensible on review.

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How residential status is determined under Section 6

An individual is resident in India for a previous year if either basic condition is met: present in India for 182 days or more during the year (Sec 6(1)(a)); or present for 60 days or more during the year AND 365 days or more in aggregate during the preceding 4 years (Sec 6(1)(c)). Meeting neither makes the individual a non-resident for that year.

The 60-day condition does not apply at all to an Indian citizen who leaves India during the year for employment abroad or as a crew member of an Indian ship — only the 182-day test applies. It also does not apply to an Indian citizen or PIO living abroad who visits India, PROVIDED their total income other than foreign-source income is ₹15 lakh or less; where that income exceeds ₹15 lakh, Finance Act 2020 replaced the 60-day threshold with a 120-day threshold for this class (still combined with the 365-days-in-4-years condition). Separately, Sec 6(1A) deems an Indian citizen a resident (irrespective of days present) if their India income exceeds ₹15 lakh and they are not liable to tax in any other country or territory by reason of domicile, residence or a similar criterion — a sweep aimed at "stateless" individuals, and it applies only where the person is not already resident under the basic conditions.

A resident individual is Resident and Ordinarily Resident (ROR) only if both additional conditions under Sec 6(6) are met: resident in India in at least 2 of the preceding 10 years, AND present in India for 730 days or more during the preceding 7 years. Failing either makes the person Resident but Not Ordinarily Resident (RNOR). A person who is resident only via the 120-day rule, or only via the Sec 6(1A) deemed-residency sweep, is automatically RNOR regardless of those two tests. The classification then drives the scope of taxation under Sec 5 — ROR is taxed on worldwide income; RNOR is taxed on India income plus foreign income only from a business controlled from India or a profession set up in India; NR is taxed only on India income.

Worked example — NRI businessman visiting India, income above ₹15 lakh

An Indian citizen settled abroad runs a business and visits India during the year. India-sourced income (rental + consulting) is ₹22 lakh. Present in India 150 days this year; 480 days in aggregate over the preceding 4 years; liable to tax in the country of residence abroad.

Inputs

Citizen/PIO, visiting IndiaYes

India income₹22 lakh (> ₹15 lakh)

Days this year / preceding 4 years150 / 480

Taxed in another countryYes

Output

182-day testNot met (150 < 182)

120-day test (visiting, income > ₹15L)Met — 150 ≥ 120 and 480 ≥ 365

VerdictResident — automatically RNOR (Sec 6(6)(c))

Because income exceeds ₹15 lakh, the visiting citizen is tested against the 120-day threshold (not the standard 60-day threshold) combined with 365 days over the preceding 4 years. Both are met, so the individual is resident — but resident via this route is deemed RNOR outright, without applying the 2-of-10-years or 730-day tests.

Common mistakes

Applying the plain 60-day test to a visiting citizen/PIO

Once income (other than foreign-source) crosses ₹15 lakh, the applicable threshold for a visiting citizen/PIO is 120 days, not 60 — using 60 days understates residency risk for high-income NRIs on an extended India visit.

Forgetting the 365-day-in-4-years leg of the 120-day test

The 120-day threshold is not standalone — it is combined with the same 365-days-in-the-preceding-4-years condition as the standard 60-day test. Both legs must be met for the modified basic condition to make the person resident.

Treating Sec 6(1A) deemed residency as making someone ROR

Sec 6(1A) deemed residents are always classified RNOR (Sec 6(6)(d)) — the provision is a narrow anti-abuse sweep for citizens not taxed anywhere, not a route to full ROR/worldwide-income status.

Applying Sec 6(1A) even when the person is resident under the basic conditions

The deemed-resident sweep under Sec 6(1A) is residual — it only operates on an individual who is NOT already resident under Sec 6(1). If the 182-day or modified basic condition already makes the person resident, 6(1A) is irrelevant to that year.

Applying the crew/employment-abroad carve-out to a foreign national

The relaxation that removes the 60-day test entirely (leaving only the 182-day test) is available only to an Indian citizen leaving for employment abroad or as ship's crew, or to a citizen/PIO visiting India — not to foreign nationals, who are always tested under the standard 60-day / 365-day condition.

Frequently asked questions

What is the basic 182-day test under Section 6?+

An individual present in India for 182 days or more during the relevant previous year is a resident for that year, regardless of any other factor — this is the first and simplest basic condition under Sec 6(1)(a).

When does the 60-day test get replaced by the 120-day test?+

Only for an Indian citizen or Person of Indian Origin who is living abroad and visits India, and whose total income other than income from foreign sources exceeds ₹15 lakh in the year — Finance Act 2020 raised their applicable threshold from 60 to 120 days (still combined with 365 days over the preceding 4 years). For such a person with income ≤ ₹15 lakh, the 60-day test does not apply at all — only the 182-day test is relevant.

What is the ROR test — 2 out of 10 years and 730 days?+

A resident individual is Resident and Ordinarily Resident only if resident in India in at least 2 of the preceding 10 years AND present in India for 730 days or more during the preceding 7 years (Sec 6(6)(a)). Failing either condition makes the person RNOR instead.

Who is a "deemed resident" under Section 6(1A)?+

An Indian citizen whose total income other than foreign-source income exceeds ₹15 lakh, and who is not liable to tax in any other country or territory by reason of domicile, residence or a similar criterion, is deemed a resident of India — even with zero days of physical presence. This applies only if the person is not already resident under the ordinary basic conditions, and a deemed resident is always classified RNOR.

What is the difference in scope of taxation between ROR, RNOR and NR?+

ROR is taxed on worldwide income — everything received or accruing in India, plus all foreign income. RNOR is taxed on India-linked income plus foreign income only if it is from a business controlled from India or a profession set up in India — other foreign income is not taxable. NR is taxed only on income received in India or accruing/arising (or deemed to accrue/arise) in India; all foreign income is outside the Indian tax net.

Does citizenship matter for residential status?+

The basic 182-day and 60-day/365-day tests apply to everyone regardless of citizenship. But the carve-outs that relax the 60-day test — the employment-abroad/crew exception, the visiting-citizen/PIO exception, the 120-day rule, and the Sec 6(1A) deemed-resident sweep — are all restricted to Indian citizens (the visiting exception and the 120-day rule extend to PIOs as well).

Can residential status change from year to year for the same person?+

Yes. Residential status is determined afresh for every previous year based on that year's day count and the rolling 4-year and 7-year (and 10-year) look-back windows — a person can be NR one year, RNOR the next, and ROR the year after, purely from changes in travel pattern.

Authoritative sources

Section 6, Income-tax Act 1961 — The 120-day rule and the Section 6(1A) deemed-residency provision were inserted by the Finance Act 2020, effective from AY 2021-22 onwards. Verify against Section 6 as amended and any CBDT clarificatory circular before relying on a borderline day-count.

Always confirm against the latest version of the source. Regulations evolve and amendments are common.

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Last reviewed: 2026-07-29 · For informational purposes only — not professional advice.