Definition of ‘Non Resident’ – Income Tax

As per S.2(30) of Income Tax Act, 1961, unless the context otherwise requires, the term “non-resident” means a person who is not a “resident” , and for the purposes of sections 92, 93 and 168, includes a person who is not ordinarily resident within the meaning of clause (6) of section 6.

A person is said to be “not ordinarily resident” in India in any previous year, under clause (6) of Section 6 of Income Tax, if such person is—

(a) an individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less; or

(b) a Hindu undivided family whose manager has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less.


It may be noted that, residential status of a person, i.e. being resident or non-resident, basically makes a lot of financial impact on tax liability.