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Tax incidence of an individual solely depends upon his residential status, which in turn depends on his physical presence in India. If an individual is resident and ordinarily resident, worldwide income of the individual is liable to tax in India. If an individual is resident but not ordinarily resident, income received in India or accruing/arising from a source in India or income derived from a business controlled or profession set up in India is liable to tax in India. If an individual is considered non-resident, income received in India or accruing/arising from a source in India is liable to tax in India. There is no special tax regime for expatriates.
Tax Year- The Indian tax year commences on 1st April and ends on 31st March of the succeeding year.
Determination of residential status- Residential status of an individual can be classified as under: Resident in India Resident and ordinarily resident (ROR) and Resident but not ordinarily resident (RNOR) Non-resident in India (NRI) An individual is treated as Resident in India if any one of the following conditions is satisfied:M (a) Individual's stay in India is 182 days or more in any tax year (b) Individual's stay in India is 60 days or more in the relevant tax year and 365 days or more in aggregate in the 4 tax years immediately preceding The tax year for which residential status is determined. If none of the above conditions is fulfilled, the individual is treated as NR. It is not essential for the stay in India to be continuous or at the same place.