Basics & Residential Status (Income Tax)

Core concepts

1. 01Income Tax Act 1961 — Assessee, Previous Year, Assessment Year, total income.
2. 02Residential status determines scope of total income (Sec 5, 6).
3. 03Individual ROR if: in India ≥182 days in PY OR ≥60 days in PY + ≥365 days in 4 preceding PYs.
4. 04Deemed resident (Sec 6(1A)) — Indian citizen with income >₹15 lakh and not liable to tax elsewhere.
5. 05Income deemed to accrue in India: salary for services in India, business connection, capital asset in India.

Exam-critical pointers

• ⭐AY 2025-26 corresponds to PY 2024-25.
• ⭐Crew of Indian ship: count of days adjusted (continuous discharge certificate).
• ⭐Indian citizen leaving India for employment: 182 days threshold (not 60).
• ⭐Section 6(1A) ROR-from-Sec-6(6) test introduced from AY 2021-22 onwards.