Residential status determines whether we as Indians are liable to pay tax in India. A person who is an Indian resident must stay in India for the past 5 consecutive years. The income tax depends on the residential status of the taxpayer in the financial year and the preceding four financial year. Apart from that, the taxpayer must declare the residential status when filing the income tax. There are different types of residential status in India. I will share with you the resident and ordinary resident meaning in India.
Get home loans with minimum eligibility criteria at NoBroker!What is resident and ordinary resident?
I would first like to explain resident meaning and then ordinary resident meaning.
Resident:
If a person is considered resident in India, he/she should fulfil the criteria including:
The taxpayer should be in India for 182 or more days, or
The taxpayer should be in India for more than 365 days in the last four years preceding the particular financial year.
Ordinary resident:
A person is considered 'not ordinary residents' when he/she fulfils the criteria including:
An individual living outside India for nine years out of the previous ten years preceding a financial year or has been outside India for the past seven years preceding the year he/she has been in India or a period of seven hundred and nine days in total, or
A person who belongs to the Hindu Undivided Family (HUF), has been outside India for nine out of the 10 preceding years as been outside India for past seven years preceding the year he/she has been in India or a period of seven hundred and nine days in total.
Therefore an 'ordinary resident' would be an individual who does not belong to any of the groups in the above pointers.
I hope you understand resident and ordinary resident meaning.
Read more:
Difference Between NRI And OCI
What Is The Difference Between NRI And NRE?
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Authors Of The Question
What is resident and ordinary resident?
Dainik
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2022-05-17T10:21:49+00:00 2022-05-17T10:43:34+00:00Comment
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