JK SHAH CLASSES Direct Tax – CA Inter May’2025
CHAPTER 2: RESIDENTIAL STATUS & SCOPE OF TOTAL INCOME
A] Residential Status :
I] Individual :
a) Based on Physical Presence [Section 6(1)]
b) Deemed Residency (w.e.f. 01st April 2020 onwards) [Section 6(1A)]
Based on Physical Presence :
Individual
Resident of India Non-Resident of India
2
Any 1 Or Both
Basic
Both Satisfied Conditions
Not Satisfied
Basic Conditions :
a) Number of Days Stay in India during the Previous Year is 182 Days or More (>= 182)
OR
b) i) Number of Days Stay in India during the Previous Year is 60 Days or More (>= 60)
AND
ii) Number of Days Stay in India during 4 Preceding Previous Years is 365 Days or More
(>= 365)
P a g e 1 | 22 Prof. Chirag Goyal
,JK SHAH CLASSES Direct Tax – CA Inter May’2025
Note: 4 Preceding Previous Years (P.P.Y.) have to be 4 years immediately preceding to the Previous
Year.
Illustration:
For the Previous Year 2024-25, 4 P.P.Y are :
P.Y. 2020-21
4 P.P.Y. immediately
P.Y. 2021-22
preceding
P.Y. 2022-23
P.Y. 2024-25
P.Y. 2023-24
If the Individual is Resident
Resident – Ordinarily Resident Resident – Not Ordinarily Resident
2
(R-OR) (R-NOR)
Additional
Both Any 1 or
Conditions
Satisfied Both not Satisfied
Additional Conditions :
a) Number of Days Stay in India during 7 Preceding Previous Year is 730 Days or More (>= 730)
AND
b) He is Resident in atleast 2 out of 10 Preceding Previous Years (>= 2)
Note: For P.Y. 2024-25 7 P.P.Y. P.Y. 2017-18 to P.Y. 2023-24
10 P.P.Y. P.Y. 2014-15 to P.Y. 2023-24
P a g e 2 | 22 Prof. Chirag Goyal
, JK SHAH CLASSES Direct Tax – CA Inter May’2025
Points to Remember :
❖ Stay in India includes Date of Arrival and Date of Departure
Illustration:
Mr. Jay left India for Dubai on 27th April 2024 and he returned on 14th July 2024. His Stay in India during P.Y.
2024-25 will include 27th April 2024 i.e., Date of Departure and 14th July 2024 i.e., Date of Arrival.
❖ Stay in India includes Stay in Territorial Waters of India
Illustration:
Mr. Ranvijay stayed in India during the P.Y. 2024-25 for 140 days on the landmass of India and he was
stationed as a Navy Officer for 55 days on a Ship in Territorial Waters of India. Rest of the days he spent in
different countries. His total Stay in India would be still 195 days (140 + 55).
❖ Stay may not be continuous or at the same place
Illustration:
Ms. Sunaina, travelled from Mumbai to Jaipur for 44 days, Delhi for 26 days, went to USA for 15 days,
returned and stayed in Chennai for 36 days and again returned to Mumbai and Stayed for 85 days before
leaving for China. Her Stay in India will be still seen as 191 days (44 + 26 + 36 + 85).
P a g e 3 | 22 Prof. Chirag Goyal
CHAPTER 2: RESIDENTIAL STATUS & SCOPE OF TOTAL INCOME
A] Residential Status :
I] Individual :
a) Based on Physical Presence [Section 6(1)]
b) Deemed Residency (w.e.f. 01st April 2020 onwards) [Section 6(1A)]
Based on Physical Presence :
Individual
Resident of India Non-Resident of India
2
Any 1 Or Both
Basic
Both Satisfied Conditions
Not Satisfied
Basic Conditions :
a) Number of Days Stay in India during the Previous Year is 182 Days or More (>= 182)
OR
b) i) Number of Days Stay in India during the Previous Year is 60 Days or More (>= 60)
AND
ii) Number of Days Stay in India during 4 Preceding Previous Years is 365 Days or More
(>= 365)
P a g e 1 | 22 Prof. Chirag Goyal
,JK SHAH CLASSES Direct Tax – CA Inter May’2025
Note: 4 Preceding Previous Years (P.P.Y.) have to be 4 years immediately preceding to the Previous
Year.
Illustration:
For the Previous Year 2024-25, 4 P.P.Y are :
P.Y. 2020-21
4 P.P.Y. immediately
P.Y. 2021-22
preceding
P.Y. 2022-23
P.Y. 2024-25
P.Y. 2023-24
If the Individual is Resident
Resident – Ordinarily Resident Resident – Not Ordinarily Resident
2
(R-OR) (R-NOR)
Additional
Both Any 1 or
Conditions
Satisfied Both not Satisfied
Additional Conditions :
a) Number of Days Stay in India during 7 Preceding Previous Year is 730 Days or More (>= 730)
AND
b) He is Resident in atleast 2 out of 10 Preceding Previous Years (>= 2)
Note: For P.Y. 2024-25 7 P.P.Y. P.Y. 2017-18 to P.Y. 2023-24
10 P.P.Y. P.Y. 2014-15 to P.Y. 2023-24
P a g e 2 | 22 Prof. Chirag Goyal
, JK SHAH CLASSES Direct Tax – CA Inter May’2025
Points to Remember :
❖ Stay in India includes Date of Arrival and Date of Departure
Illustration:
Mr. Jay left India for Dubai on 27th April 2024 and he returned on 14th July 2024. His Stay in India during P.Y.
2024-25 will include 27th April 2024 i.e., Date of Departure and 14th July 2024 i.e., Date of Arrival.
❖ Stay in India includes Stay in Territorial Waters of India
Illustration:
Mr. Ranvijay stayed in India during the P.Y. 2024-25 for 140 days on the landmass of India and he was
stationed as a Navy Officer for 55 days on a Ship in Territorial Waters of India. Rest of the days he spent in
different countries. His total Stay in India would be still 195 days (140 + 55).
❖ Stay may not be continuous or at the same place
Illustration:
Ms. Sunaina, travelled from Mumbai to Jaipur for 44 days, Delhi for 26 days, went to USA for 15 days,
returned and stayed in Chennai for 36 days and again returned to Mumbai and Stayed for 85 days before
leaving for China. Her Stay in India will be still seen as 191 days (44 + 26 + 36 + 85).
P a g e 3 | 22 Prof. Chirag Goyal
