Under the Indian tax laws, an individual’s income tax liability for a financial year is dependent on his residential status, which is based on the number of days of stay in India. As per Section 6 of the Income-tax Act, 1961 (‘the Act’), an individual is considered as a ‘Resident’ in India, if he satisfies either of the following basic conditions:
Condition 1: He is present in India for 182 days or more during the current FY; or
Condition 2: He is present in India for 60 days or more during the current FY and 365 days or more during the preceding 4 FYs.
If both the above conditions are not satisfied, then the person is said to be a ‘Non-resident Indian’ (NRI).