Section 6Central Act

Section 6: Residence in India

The Income-tax Act, 1961

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 eighty-two days or more; or

(b)

[* * *] [ Sub-Clause (b) omitted by Act 14 of 1982, Section 3 (w.e.f. 1.4.1983).]

(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.

[Explanation [1.] [Substituted by Act 36 of 1989, Section 3, for Explanation (w.e.f. 1.4.1990).] - In the case of an individual, -

(a)being a citizen of India, who leaves India in any previous year] [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] [Inserted by Act 12 of 1990, Section 4 (w.e.f. 1.4.1990).] [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; [Substituted by Act 36 of 1989, Section 3, for Explanation (w.e.f. 1.4.1990).]

(b)being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of section 115-C, 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 eighty-two days] [ Substituted by Act 32 of 1994, Section 5, for " one hundred and fifty days" (w.e.f. 1.4.1995).][had been substituted.] [Substituted by Act 36 of 1989, Section 3, for Explanation (w.e.f. 1.4.1990).]

[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.] [Inserted by Finance Act, 2015 (No. 20 of 2015), dated 14.5.2015.]

(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.

(3)

[ A company is said to be 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 the business of an entity as a whole, are in substance made.] [Substituted by Finance Act, 2015 (No. 20 of 2015), dated 14.5.2015.]

(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.

(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.]

Sec 5A — [ Apportionment of income between spouses governed by Portuguese Civil Code. [ Inserted by Act 32 of 1994, Section 4 (w.r.e.f. 1.4.1963).]

Sec 7 — Income deemed to be received

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