Section 6:
Residence in India.
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 eightytwo days or more; or
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(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.
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Explanation 3
1.—In the case of an individual,—
(a) being a citizen of India, who leaves India in any previous year 4
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 “one hundred and 5
eighty-two days” had been substituted.
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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.
(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.
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(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.
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(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.
Notes:
1. Sub-clause (b) omitted by Act 14 of 1982, s. 3 (w.e.f. 1-4-1983).
2. Subs. by Act 36 of 1989, s. 3, for the “Explanation” (w.e.f. 1-4-1990).
3. Explanation renumbered as Explanation1 thereof by Act 20 of 2015, s. 4 (w.e.f. 1-4-2015).
4. Ins. by Act 12 of 1990, s. 4 (w.e.f. 1-4-1990).
5. Subs. by Act 32 of 1994, s. 5 (w.e.f. 1-4-1995).
6. Ins. by Act 20 of 2015, s. 4 (w.e.f. 1-4-2015).
7. Subs. by Act 28 of 2016, s. 4, for clause (3) (w.e.f. 1-4-2017).
8. Subs. by Act 32 of 2003, s. 4, for certain words (w.e.f. 1-4-2004).