Please clarify if the following assumption is correct: a Resident but not Ordinarily Resident (RNOR) individual is a person who satisfies one of the following conditions —
A. He has been a non-resident in India in nine out of the 10 previous years preceding that year
- Srishyla
According to the provisions of income tax law, an individual is said to be a ‘resident’ of India if he satisfies either of the following two basic conditions:
- He is in India for 182 days or more in the relevant tax year; or
- He is in India for 60 days or more in the relevant tax year and 365 days or more in the four years preceding the relevant tax year.
A resident is further categorised as an Ordinary Resident or a Not Ordinarily Resident. Any resident who satisfies any of the following two conditions is said to be Not Ordinarily Resident:
- He is a non-resident in India in at least nine out of 10 tax years preceding the relevant tax year; or
- He is present in India for 729 days or less during the seven tax years preceding the relevant tax year.
Therefore, your assumption of the conditions required to be qualified as a Resident but Not Ordinarily Resident individual are correct.
The writer is a practising chartered accountant. Send your queries to >taxtalk@thehindu.co.in