Residential status of individuals:

Residential status as per Foreign Exchange Management Act, 1999 (FEMA) is determined by the number of days in India in the preceding financial year (FY) and / or the purpose of stay.

1. A person is said to be resident in India if he has resided in India for more than 182 days during the preceding FY and:
2. • He has gone out of India for purpose other than employment outside India / other than business or vocation outside India / for a certain period or
   • He has come for employment in India / for carrying on business or vocation in India / for an uncertain period.
3. Similarly, a person is said to be a person resident outside India if he has resided in India for 182 days or less, during the preceding FY and:
4. • He has gone out of India for purpose other than employment outside India / other than business or vocation outside India / for a certain period or
   • He has come for employment in India / for carrying on business or vocation in India / for an uncertain period.
5. When a person comes to India for a purpose other than employment / other than business or vocation / for a certain period, he shall be a person resident outside India irrespective of the number of days he spent in India in the preceding FY.
6. When a person goes out of India for the purpose of employment / business or vocation / for an uncertain period, he shall be a resident outside India irrespective of the number of days he spent in India in the preceding FY.

Residential status of other entities:

The following entities are persons resident in India:

1. Any person/body corporate registered/incorporated in India
2. An office, branch or agency in India owned or controlled by a person resident outside India.
3. An office, branch or agency outside India owned or controlled by a person resident in India.

Apart from above, all the other entities are considered to be person resident outside India.