X is resident and ordinarily resident in India.
The Income Tax Act, 1961, determines an individual's residential status for a financial year by counting the number of days the individual is physically present in India during that year and in the preceding years.
The Act considers an individual as a resident of India if he satisfies any of these following conditions:
- The individual is present in India for 182 days or more during the relevant financial year or
- The individual is present in India for 60 days or more during the financial year and 365 days or more during the four financial years immediately preceding the relevant financial year.
Since X is leaving India for the first time on 30/11/2022, X will be present in India for over 182 days during the financial year 2022-23. Therefore, X is satisfying condition number 1 thus X IS RESIDENT IN INDIA for assessment year 2023-24.
Wait... there's more to it. Act classifies residents into 2 categories: 1. Ordinarily resident and 2. Not ordinarily resident.
Act classifies a resident as ordinarily resident if the individual satisfies these 2 conditions.
- The Individual has been a resident in India in at least two out of the ten previous years immediately preceding the relevant financial year and
- The Individual's total stay in India during the seven years preceding the relevant financial year is 730 days or more,
Now because X never left India so he (she) is satisfying both the conditions so X is a resident and ordinarily resident of India.
Had X not met both the above conditions, then he(she) will be a resident but not ordinarily resident of India.
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