Q.Mr. Alok Bhatia returned to India permanently on 1st June 2025, after living and working abroad continuously for the previous 12 years. During the previous year 2025-26 he stayed in India for 300 days, satisfying the basic condition under Section 6(1) and thus qualifying as Resident. He was resident in India (as per Section 6(1)) in only 1 out of the 10 previous years immediately preceding 2025-26, and had stayed in India for just 40 days in total during the 7 years immediately preceding 2025-26 (short visits before his permanent return). Determine whether he is ROR or RNOR for AY 2026-27, and explain briefly why this classification benefits a returning NRI like him.

A long spell abroad followed by a permanent return typically fails BOTH additional conditions in the return year.

Additional Condition (i): resident in India in at least 2 of the preceding 10 previous years — Mr. Bhatia was resident in only 1 of those years, which is less than 2, so this condition FAILS.

Additional Condition (ii): present in India for 730 days or more during the preceding 7 previous years — he was present for only 40 days, far short of 730, so this condition FAILS as well.

Since a Resident individual needs BOTH additional conditions satisfied to be ROR, and Mr. Bhatia fails both, he is classified as Resident but Not Ordinarily Resident (RNOR) for AY 2026-27, even though he is unquestionably Resident this year based on his 300-day current-year stay. …

Concluding that a 12-year absence automatically makes someone Non-Resident on return — his CURRENT year's 300-day stay makes him Resident regardless of the past; the additional condition …