Non-Residential Individual under Income Tax Act, 1961: Section 2(30)
Non-resident person is a person who is not a resident. Any person who satisfies the basis conditions u/s 6(1) is a resident. A Non-resident does not satisfy any conditions.
Basic conditions to test as to when an individual is resident in India u/s 6(1), an individual is said to be resident in India in any previous year, if he satisfies at least one of the following basic conditions—
(a) He is in India in the previous year for a period of 182 days or more
(b) He is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately proceeding the previous year
In the following two cases, an individual needs to be present in India for a minimum of 182 days or more in order to become resident in India:
1. An Indian citizen who leaves India during the previous year for the purpose of taking employment outside India or an Indian citizen leaving India during the previous year as a member of the crew of an Indian ship.
2. An Indian citizen or a person of Indian origin who comes on visit to India during the previous year (a person is said to be of Indian origin if either he or any of his parents or any of his grandparents was born in undivided India).
Related Cases:
S. 2(30) & 61(1) of IT Act, 1961—Residential status—If a citizen of India who has left India for employment outside India, he should be treated as resident of India only if he was in India during the relevant year/period for 182 days or more, meaning thereby if an individual has spent less than 182 days in India during a previous year and was outside India for the purposes of employment, then regardless of preceeding previous years, he cannot be treated as resident of India. Therefore, the applicant who stayed in India only for 123 days in the relevant previous year, neither satisfies clause (a) nor clause (c) of S. 6(1) and, therefore, he was non-resident during the relevant period and his income accrued outside India by reason of his employment in USA is not taxable in India—Anurag Choudhary, In re. [2010] 322 ITR 293 (AAR).
S. 2(30), 42, 6 of IT Act, 1961—Deduction of tax at source—The crew with reference to whom exemption was availed of and who offered their services outside the territorial waters for an Indian shipping company, the period which exceeded 182 days, there is no scope to find fault with the action of the Indian shipping company in not having deducted any tax at source in respect of the salary paid to such crew for the relevant period. CIT vs. ICL Shipping Ltd. (2009) 315 ITR 195 (Mad)
Reference:
As Per Section 2(30), Of the Income Tax Act, 1961-
“Non-resident” means a person who is not a “resident” , and for the purposes of sections 92 , 93 and 168, includes a person who is not ordinarily resident within the meaning of clause (6) of section 6;
A resident Hindu undivided family is an ordinarily resident in India if the karta or manager of the family (including successive kartas) satisfies the following two additional conditions as laid down by section 6(6)(b):
(i) Karta has been resident in India in at least 2 out of 10 previous years immediately preceeding the relevant previous year
(ii) Karta has been present in India for a period of 730 days or more during 7 years immediately preceeding the previous year
If the karta or manager of a resident Hindu undivided family does not satisfy the two additional conditions, the family is treated as resident but not ordinarily resident in India.