Residential status of an individual from his days of stay (as set, 1961 Act, AY 2018-19)

Reading of the table

The year printed as 3013-14 is read as 2013-14, the only year missing from the run 2004-05 to 2017-18. Mr. Suresh lives in Hyderabad and only travels abroad on business, so he is not an Indian citizen leaving India for employment, nor one coming to India on a visit; the 60-day test in section 6(1)(c) applies to him without the 182-day substitution of its Explanation 1.

Step 1: resident or non-resident in 2017-18

An individual is resident in a previous year if he is in India for 182 days or more in it (section 6(1)(a)), or for 60 days or more in it after 365 days or more in the four years before it (section 6(1)(c)).

In 2017-18 he was in India for 200 days, which is 182 or more, so he is resident under section 6(1)(a). (He also meets section 6(1)(c): 200 days, and 366 days in 2013-14 to 2016-17.)

Step 2: ordinarily resident or not

A resident individual is not ordinarily resident if he was non-resident in nine of the ten previous years before 2017-18, or was in India for 729 days or less in all during the seven previous years before it (section 6(6)(a)). Either test is enough.

Test (ii): stay in the seven years 2010-11 to 2016-17

716 days is 729 or less, so this test alone makes him not ordinarily resident.

Test (i), for completeness: status in each of the ten years 2007-08 to 2016-17

He was resident in at least eight of the ten years, so test (i) does not apply; the result rests on test (ii), and the missing 2003-04 figure cannot change it.

Conclusion

For assessment year 2018-19 Mr. Suresh is resident but not ordinarily resident in India. He is taxed on income received or deemed received in India, income accruing or deemed to accrue in India, and income accruing outside India only if it comes from a business controlled in India or a profession set up in India (section 5(1), proviso).