Mr. Subhash, an Indian citizen, is currently in employment with an overseas company located in Country X. During the previous year 2025-26, he comes…

Mr. Subhash is an Indian citizen in employment in Country X. He comes on a visit to India during the P.Y.2025-26 for 135 days. His stay in India in the four immediately preceding previous years is as follows:P.Y. 2021-22 – 100 daysP.Y. 2022-23 – 50 daysP.Y. 2023-24 – 76 daysP.Y. 2024-25 – 45 daysTotal - 271 daysMr. Subhash, an Indian citizen, visiting India in the P.Y.2025-26, would be a resident in India for A.Y.2026-27, if he satisfies either of the following conditions –(i) He is in India for 182 days or more during the P.Y.2025-26 or (ii) He is in India for a period of 120 days or more during the P.Y.2025-26 and his stay in India in the four immediately preceding previous years is 365 days or more if his total income (excluding income from foreign sources) exceeds 15lakhs.Since he did not satisfy either of the conditions, Mr. Subhash is a non-resident in P.Y. 2025-26 as per section 6(1).However, he would be deemed resident under section 6(1A) if his total income (excluding income from foreign sources) exceeds 15lakhs irrespective of the period of his stay in India in the relevant previous year.Computation of Total Income (excluding income from foreign sources) of Mr. Subhash Particulars Amount (₹) Income from salary earned and received in Country X (income from a foreign source, hence, to be excluded) - Income earned and received from a house property situated in Country X (income from a foreign source, hence, to be excluded) - Income deemed to be accrued and arise in India 2,00,000 Income from retail business (to be included since the business is controlled from India, even though such income accrues and is received outside India) 10,00,000 Income accrued and arise in India 4,00,000 Total Income (excluding income from foreign sources) of Mr. Subhash 16,00,000 Since Mr. Subhash is an Indian citizen having total income (excluding income from foreign sources) exceeding 15lakhs and not liable to tax in Country X, he would be a deemed resident in P.Y. 2025-26 as per section 6(1A). He would be treated as resident but not ordinarily resident.