Understanding Residency in India: Who Qualifies?
Learn who is considered a resident of India and how it impacts taxation and legal benefits.
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A resident of India is an individual who spends 182 days or more in a financial year in India, or 60 days in the year and 365 days in the preceding four years. This status affects tax obligations and eligibility for various legal and governmental benefits. Ensuring you meet these criteria can help you stay compliant and take advantage of resident-specific advantages.
FAQs & Answers
- What are the requirements to be a resident of India? To be considered a resident of India, you must spend 182 days in India during a financial year or 60 days in the current year combined with 365 days in the previous four years.
- Why is residency status important in India? Residency status determines tax obligations and eligibility for various legal and governmental benefits in India.
- How does residency affect taxes in India? Residents are subject to Indian income tax on their global income, while non-residents are taxed only on income sourced in India.
- Can a person be a resident of multiple countries? Yes, it is possible for a person to be a resident in more than one country simultaneously, but this can complicate tax obligations.