Residential status of an individual for income tax purpose is determined on the basis of number of days he stayed in India .Income tax Act doesn’t prescribe continuous staying in India.
For income tax purpose residential status of an assessee is classified into;
I. Resident (ordinarily)
II Resident (not ordinarily)
III. Non resident
I.Resident (ordinarily)
An individual besides satisfying any of the basic conditions, satisfies both additional conditions he is considered as ordinarily resident.
II.Resident (not ordinarily)
An individual satisfying any of the basic condition without satisfying additional conditions are considered as not ordinarily resident.
III.Non resident
Individual not satisfying basic conditions are treated as nonresident.
Basic conditions :
He is in India for at least 182 days in the previous year, OR
He is India for at least 365 days preceding the relevant previous year and is in India at least 60 days during the previous year
Additional conditions :
He was in India for at least 730 days during the seven years preceding the relevant previous year, and
He was a resident for two out of ten previous years preceding the relevant previous year.
Please check, whether you satisfied these two additional conditions:
if you are Resident (ordinarily), then your global income will be taxed and is required to report global assets in your Indian income tax return.
if you are Resident (not ordinarily) then you will be taxed on your India-source income (i.e., income earned in India or received in India) only and NOT on income earned or received outside India. you will also be taxed for the income accrue or arise outside India and received outside India from a business controlled from India.
Benefits under the Double Taxation Avoidance Agreement may also be explored.
