Section 6 - Residence in India - Income-tax Act, 1961

Residence in India. 6. For the purposes of this Act,- ( 1 ) An individual is said to be resident in India in any previous year, if he- ( a ) is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or ( b ) 1 [ **** ] ( c ) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year. 2 [ 6 [Explanation 1]. - In the case of an individual,- ( a ) being a citizen of India, who leaves India in any previous year 3 [ as a member of the crew of an Indian ship as defined in clause ( 18 ) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or ] for the purposes of employment outside India, the provisions of sub-clause ( c ) shall apply in relation to that year as if for the words sixty days , occurring therein, the words one hundred and eighty-two days had been substituted ; ( b ) being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause ( e ) of section 115C, who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause ( c ) shall apply in relation to that year as if for the words sixty days , occurring therein, the words 4 [ one hundred and eighty-two days ] had been 10 [ substituted and in case of 13 [ such person ] having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year, for the words sixty days occurring therein, the words one hundred and twenty days had been substituted ].] 7 [ Explanation 2.- For the purposes of this clause, in the case of an individual, being a citizen of India and a member of the crew of a foreign bound ship leaving India, the period or periods of stay in India shall, in respect of such voyage, be determined in the manner and subject to such conditions as may be prescribed. ] 11 [ (1A) Notwithstanding anything contained in clause (1), an individual, being a citizen of India, having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year shall be deemed to be resident in India in that previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature; ] 14 [ Explanation .-For the removal of doubts, it is hereby declared that this clause shall not apply in case of an individual who is said to be resident in India in the previous year under clause (1). ] ( 2 ) A Hindu undivided family, firm or other association of persons is said to be resident in India in any previous year in every case except where during that year the control and management of its affairs is situated wholly outside India. 9 [ (3) A company is said to be a resident in India in any previous year, if- (i) it is an Indian company; or (ii) its place of effective management, in that year, is in India. Explanation .-For the purposes of this clause place of effective management means a place where key management and commercial decisions that are necessary for the conduct of business of an entity as a whole are, in substance made. ] ( 4 ) Every other person is said to be resident in India in any previous year in every case, except where during that year the control and management of his affairs is situated wholly outside India. ( 5 ) If a person is resident in India in a previous year relevant to an assessment year in respect of any source of income, he shall be deemed to be resident in India in the previous year relevant to the assessment year in respect of each of his other sources of income. 5 [ ( 6 ) A person is said to be not ordinarily resident in India in any previous year if such person is- ( a ) an individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less; or ( b ) a Hindu undivided family whose manager has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine 12 [ days or less; or (c) a citizen of India, or a person of Indian origin, having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year, as referred to in clause (b) of Explanation 1 to clause (1), who has been in India for a period or periods amounting in all to one hundred and twenty days or more but less than one hundred and eighty-two days; or (d) a citizen of India who is deemed to be resident in India under clause (1A). Explanation .-For the purposes of this section, the expression income from foreign sources means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India). 15 [ and which is not deemed to accrue or arise in India. ] ] . ] ************** NOTES:- 1. Omitted vide Section 3 of the Finance Act, 1982 w.e.f. 01-04-1983 before it was read as, (b) maintains or causes to be maintained for him a dwelling place in India for a period or periods amounting in all to one hundred and eighty-two days or more in that year and has been in India for thirty days or more in that year; or 2. Substituted vide Section 3 of the Direct Tax Laws (Second Amendment) Act, 1989 w.e.f. 01-04-1990 before it was read as, Explanation : In the case of an individual, being a citizen of India, - (a) who leaves India in any previous year for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words sixty days , occurring therein, the words one hundred and eighty-two days had been substituted; (b) who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words sixty days , occurring therein, the words ninety days had been substituted. Original Explanation was Inserted vide Section 3 of the Finance Act, 1978 w.e.f. 01-04-1979 And later Substituted vide Section 3 of the Finance Act, 1982 w.e.f. 01-04-1983 before it was read as, Explanation : In the case of an individual, being a citizen of India, who is rendering service outside India and who is or has been in India on leave or vacation in the previous year, the provisions of sub-clauses (b) and (c) shall apply in relation to that year as if for the words thirty days and sixty days , respectively occurring in the said sub-clauses, the words ninety days had been substituted. 3. Inserted vide Section 4 of the Finance Act, 1990 w.e.f. 01-04-1990. 4. Substituted vide Section 5 of the Finance Act, 1994 w.e.f. 01-04-1995 before it was read as, one hundred and fifty day s 5. Substituted vide Section 4 of the Finance Act, 2003 w.e.f. 01-04-2004 before it was read as, (6) A person is said to be not ordinarily resident in India in any previous year if such person is- (a) an individual who has not been resident in India in nine out of the ten previous years preceding that year, or has not during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and thirty days or more ; or (b) a Hindu undivided family whose manager has not been resident in India in nine out of the ten previous years preceding that year, or has not during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and thirty days or more. 6. Re-numbered vide Section 4 of the Finance Act, 2015 w.e.f. 01-04-2015 before it was read as, Explanation 7. Inserted vide Section 4 of the Finance Act, 2015 w.e.f. 01-04-2015 8. Substituted vide Section 4 of the Finance Act, 2015 w.e.f. 01-04-2015 before it was read as, (3) A company is said to be resident in India in any previous year, if (i) it is an Indian company; or (ii) during that year, the control and management of its affairs is situated wholly in India. Omitted vide Section 238 of the Finance Act, 2016 w.e.f. 01-04-2016 before it was read as, (3) A company is said to be resident in India in any previous year, if- (i) it is an Indian company; or (ii) its place of effective management, in that year, is in India. Explanation.-For the purposes of this clause place of effective management means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole, are in substance made. 9. Thereafter, restore Original Substituted vide Section 4 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, (3) A company is said to be resident in India in any previous year, if- (i) it is an Indian company; or (ii) its place of effective management, in that year, is in India. Explanation.-For the purposes of this clause place of effective management means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole, are in substance made. 10. Substituted vide Section 4 of the Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2021 before it was read as, substituted 11. Inserted vide Section 4 of the Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2021 12. Substituted vide Section 4 of the Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2021 before it was read as, days or less 13. Substituted vide Section 4 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 before it was read as, the citizen or person of Indian origin 14. Inserted vide Section 4 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 15. Inserted vide Section 4 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021