Section 6 of Income Tax Act, 1961 clarifies various doubts that arise in regard to the residential status.
- According to Tax Law, ‘residence’ does not merely mean the place where the person is residing but also his animus (ambition) and his conduct must prove his intention.
- The residence status is determined based on his residence period in India or his previous year and not according to the assessment year.
- The terms citizen, nationality and domicile are different to residential status in the charging section.
Types of Residential Status:
- Resident and Ordinarily Resident
- Resident and Not-Ordinarily Resident
- Not Resident
The burden of proof about the status of resident or non-resident lies on the assessee only.
Reference:
As per Income Tax Act, 1961-
6(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 days or less.