Residence in India
[Section 6 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 6(1) of Income Tax Act 2025
6(1) For the purposes of this Act, residence of a person in India shall be determined as per this section.
Section 6(2) of Income Tax Act 2025
6(2) An individual shall be resident in India in a tax year, if he––
- (a) is in India for a total period of one hundred and eighty-two days or more in that tax year; or
- (b) is in India cumulatively for sixty days or more during that year and has been in India cumulatively for three hundred and sixty-five days or more in the four years preceding such tax year.
Section 6(3) of Income Tax Act 2025
6(3) The provisions of sub-section (2)(b) shall not apply in the case of an individual who is a citizen of India and leaves India in any tax year––
- (a) as a member of the crew of an Indian ship, as defined in section 3(18) of the Merchant Shipping Act, 1958; or
- (b) for employment outside India.
Section 6(4) of Income Tax Act 2025
6(4) The provisions of sub-section (2)(b) shall not apply in the case of an individual––
- (a) who is a citizen of India or a person of Indian origin; and
- (b) who being outside India, comes on a visit to India in any tax year;
Section 6(5) of Income Tax Act 2025
6(5) Where the person referred to in sub-section (4) has a total income exceeding fifteen lakh rupees during that tax year (other than the income from foreign sources), sub-section (2)(b) shall apply as if the words “sixty days” had been substituted with “one hundred and twenty days” for that year;
Section 6(6) of Income Tax Act 2025
6(6) For the purposes of sub-section (2), if the individual is––
- (a) a citizen of India; and
- (b) a member of the crew of a foreign-bound ship leaving India,
the total number of days in India, in respect of that voyage, shall be determined in such manner and subject to such conditions, as prescribed.
Section 6(7) of Income Tax Act 2025
6(7) Irrespective of the provisions of sub-sections (2) to (6), an individual shall be deemed to be resident in India for a tax year, if he––
- (a) is a citizen of India;
- (b) is not liable to tax in any other country or territory due to domicile, residence, or similar criteria; and
- (c) has total income exceeding fifteen lakh rupees during the tax year (other than the income from foreign sources).
Section 6(8) of Income Tax Act 2025
6(8) sub-section (7) shall not apply to an individual, who is resident in India for a tax year under sub-sections (2) to (6).
Section 6(9) of Income Tax Act 2025
6(9) A Hindu undivided family, firm or other association of persons shall be resident in India in any tax year unless the control and management of its affairs is situated wholly outside India during such tax year.
Section 6(10) of Income Tax Act 2025
6(10)(a) A company is resident in India in any tax year, if—
- (i) it is an Indian company; or
- (ii) its place of effective management is in India in that tax year; and
6(10)(b) for the purposes of this sub-section, “place of effective management” means a place where key management and commercial decisions necessary for the conduct of business of the company as a whole are, in substance, made.
Section 6(11) of Income Tax Act 2025
6(11) Every other person is resident in India in any tax year unless the control and management of its affairs is situated wholly outside India in that year.
Section 6(12) of Income Tax Act 2025
6(12) If a person is resident in India in a tax year for any source of income, he shall be deemed to be resident in India in that tax year for each of the other sources of income.
Section 6(13) of Income Tax Act 2025
6(13) A person is not ordinarily resident in India in any tax year, if that person is—
- (a) an individual who has been, or a Hindu undivided family, whose manager has been––
- (i) a non-resident in India in nine out of the ten tax years preceding that year; or
(ii) has been in India cumulatively for seven hundred and twenty-nine days or less in seven tax years preceding that year; or
- (i) a non-resident in India in nine out of the ten tax years preceding that year; or
- (b) a citizen of India or a person of Indian origin,––
- (i) whose total income excluding income from foreign sources exceeds fifteen lakh rupees during the tax year, as mentioned in sub-section (5); and
(ii) who has been in India cumulatively for one hundred and twenty days or more but less than one hundred and eighty-two days; or
- (i) whose total income excluding income from foreign sources exceeds fifteen lakh rupees during the tax year, as mentioned in sub-section (5); and
- (c) a citizen of India who is deemed to be resident in India under sub-section (7).
Section 6(14) of Income Tax Act 2025
6(14) In this section, “income from foreign sources” means the income, which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India) and which is not deemed to accrue or arise in India.
FAQs on Section 6 of the Income Tax Act 2025
1. How is an individual classified as a resident in India for tax purposes?
An individual is considered a resident in India in a tax year if they meet either of the following conditions:
- Spent 182 days or more in India during the tax year; OR
- Spent 60 days or more in the tax year and 365 days or more in the four preceding years.
2. Are there any exceptions to the 60-day rule?
Yes, the 60-day rule does not apply to:
- Indian citizens leaving India as crew members of an Indian ship or for employment abroad.
- Indian citizens or Persons of Indian Origin (PIOs) visiting India.
3. Does the 60-day rule change for high-income individuals visiting India?
Yes, if an Indian citizen or PIO visiting India has an income exceeding ₹15 lakh (excluding foreign income), the 60-day period is extended to 120 days.
4. How is residency determined for seafarers on foreign-bound ships?
For Indian citizens working on foreign-bound ships, the number of days in India is determined as per prescribed conditions.
5. Can a person be deemed a resident even if they don’t meet the usual criteria?
Yes, a person is deemed a resident if they:
- Are Indian citizens.
- Are not taxable in any other country.
- Have income exceeding ₹15 lakh (excluding foreign income).
6. Are companies considered residents in India?
A company is considered resident if:
- It is an Indian company; OR
- Its place of effective management is in India.
7. How is residency determined for Hindu Undivided Families (HUFs), firms, and associations of persons?
They are residents in India unless their control and management is wholly outside India during the tax year.
8. What does “Not Ordinarily Resident (NOR)” mean?
A person is Not Ordinarily Resident (NOR) if:
- They were non-resident for 9 out of the last 10 years; OR
- They were in India for 729 days or less in the last 7 years; OR
- They are an Indian citizen/PIO with income over ₹15 lakh and spent 120–181 days in India; OR
- They are a deemed resident under Section 6(7).
9. Can a person be resident for one source of income but non-resident for another?
No. If a person is resident for one source of income, they are considered resident for all sources.
10. What is “income from foreign sources”?
It refers to income earned outside India, except income from a business controlled or profession set up in India.
The residency status of a person in India is primarily determined by the number of days spent in India and their income levels. While the general rule is that an individual becomes a resident if they spend 182 days or more in India, exceptions exist for Indian citizens and Persons of Indian Origin (PIOs) visiting India, seafarers, and individuals leaving for employment abroad.
Additionally, high-income individuals (earning more than ₹15 lakh) and those not liable for taxation in any other country may be deemed residents, even if they do not meet the standard criteria. The Act also classifies individuals as “Not Ordinarily Resident” (NOR) based on their past residency history and duration of stay.
For companies and entities, residency depends on their place of effective management, while HUFs, firms, and associations are only considered non-resident if their control and management is wholly outside India. Understanding these rules is crucial for tax planning and compliance, as residency status directly affects income tax liability in India.
