Costing and Taxation · Ch 4 — Residential Status and Incidence of Tax (Individual)
Additional Conditions: Resident and Ordinarily Resident (ROR) vs Resident but Not Ordinarily Resident (RNOR) [Section 6(6)]
Additional Conditions: Resident and Ordinarily Resident (ROR) vs Resident but Not Ordinarily Resident (RNOR) [Section 6(6)]
Once an individual has been classified as Resident under the basic conditions (Section 2), Section 6(6) applies a second, separate pair of tests — the additional conditions — to decide whether that Resident is fully "ordinarily" resident, or only resident in a more limited sense. (A Non-Resident never reaches this stage at all — the additional conditions are irrelevant once an individual has already failed both basic conditions.)
Additional Condition (i)
The individual has been resident in India (i.e., satisfied a basic condition under Section 6(1), in any of the years, not necessarily the same basic condition each time) in at least 2 out of the 10 previous years immediately preceding the relevant previous year.
Additional Condition (ii)
The individual has been present in India for 730 days or more in total during the 7 previous years immediately preceding the relevant previous year.
The rule: BOTH conditions, not just one
Classification rule
A Resident individual who satisfies BOTH additional conditions is a Resident and Ordinarily Resident (ROR). A Resident individual who fails ONE OR BOTH additional conditions is a Resident but Not Ordinarily Resident (RNOR).
This is a common point of confusion: satisfying just one of the two additional conditions is NOT enough for ROR status — both must be met.
| Additional Condition (i) | Additional Condition (ii) | Classification |
|---|---|---|
| Satisfied | Satisfied | Resident and Ordinarily Resident (ROR) |
| Satisfied | Not satisfied | Resident but Not Ordinarily Resident (RNOR) |
| Not satisfied | Satisfied | Resident but Not Ordinarily Resident (RNOR) |
| Not satisfied | Not satisfied | Resident but Not Ordinarily Resident (RNOR) |