Q.Define 'Resident and Ordinarily Resident (ROR)' and 'Non-Resident (NR)'. In one sentence each, state the extent of income taxable in India for each.

These two categories sit at opposite ends of how much income India taxes.

Everything in between is covered by the RNOR category.

A Resident and Ordinarily Resident (ROR) is an individual who satisfies at least one basic condition under Section 6(1) (making them Resident) AND both additional conditions under Section 6(6) — resident in India in at least 2 of the preceding 10 previous years, and present in India for 730 days or more in the preceding 7 previous years. A ROR is taxed on their ENTIRE global income — every item of income, whether it arises in India or anywhere else in the world.

A Non-Resident (NR) is an individual who fails BOTH basic conditions under Section 6(1) — neither present for 182 days or more in the previous year, nor present for 60 days or more in the previous year combined with 365 days or more in the preceding four years (as modified by any applicable exception). A NR is taxed ONLY on income received or deemed received in India, or accruing or deemed to accrue in India — no foreign income is ever taxable for a NR.

Confusing ROR with RNOR when writing the definition — remember ROR requires BOTH additional conditions, while RNOR results from failing even one of them.