What is the residency status for this individual?

[ruparaj]

For FY 23-24, she stayed in India for exactly 157 days. But during the year, she left to a foreign country on work permit. In the previous 4 years she’s been in India for more than 365 days. What is her status for tax purpose? Is she NRI or not?

[Surbhi_Pal]

Hi @ruparaj,

As the person had not stayed in India for more than 182 days in the financial year, the residential status would be NRI.

Hope this helps.

[ruparaj]

@Surbhi_Pal

As the person had not stayed in India for more than 182 days in the financial year, the residential status would be NRI.

That’s not true now after 2020 for everyone. Do you mean to say someone stays out of India 182 days and by default they become NRI?

[Lawyer_Sonia]

@ruparaj

For FY 23-24, she stayed in India for exactly 157 days. But during the year, she left to a foreign country on work permit. In the previous 4 years she’s been in India for more than 365 days. What is her status for tax purpose? Is she NRI or not?

Based on the Indian Income Tax Act, an individual who has stayed in India for more than 182 days in a financial year is considered a resident for tax purposes. Since she stayed in India for only 157 days during FY 23-24, she does not meet the residency criteria. Therefore, she would be classified as a Non-Resident Indian (NRI) for tax purposes in FY 23-24, despite her previous years’ residency exceeding 365 days.