Resident – Section 2(96) | Income-tax Act, 2025 vs 1961

§ 2(96) · Income-tax Act, 2025

Resident

ITA 2025 · 2(96) ITA 1961 · 2(42)
Definition — Section 2(96)

Means a person who is resident in India as per section 6 of the Income-tax Act, 2025. The test varies by person type — an individual is resident if present in India for 182+ days in the tax year, or 60+ days in the year and 365+ days in the preceding four years (subject to exceptions for Indian citizens leaving for employment or visits from abroad). A company is resident if it is an Indian company or its place of effective management is in India. An HUF, firm or AOP is resident unless control and management is wholly outside India. A citizen of India not liable to tax anywhere else, with income exceeding ₹15 lakh, is deemed resident.

Act Comparison
Income-tax Act, 2025
2(96)
Resident
Income-tax Act, 1961
2(42)
Resident
Key Points
  • Maps to Section 2(42) of the 1961 Act
  • Residents are taxed on global income; non-residents only on India-sourced income
  • RNOR (Resident but Not Ordinarily Resident) is an intermediate category
💡 Practical Note

The residency test is pivotal — getting it wrong means either over-paying tax (as a resident on global income) or under-paying (claiming NRI status incorrectly).

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
🧾 SimpliInvoice
Create GST invoices, Bill of Supply and non-GST invoices instantly with our free browser-based invoice generator.
Open Free GST Invoice Tool
Home | About | Explore All | Welcome | Contact | Disclaimer | Privacy Policy

Comments

Post a Comment

Popular posts from this blog

Demystifying Section 194LBA: A Guide for REIT & InvIT Investors

Demystifying Section 194LBA Income in AIS/26AS A simplified guide for reporting Business Trust income in your ITR If you’ve invested in REITs (Real Estate Investment Trusts) or InvITs (Infrastructure Investment Trusts), you might have noticed “Income from Business Trust – TDS u/s 194LBA” in your AIS or Form 26AS. For many retail investors, this becomes confusing because the statement doesn’t explain whether the amount is a dividend, interest, or rental income. Without knowing the nature, it’s difficult to show it in the right place in your ITR. This article will simplify the process and help you file your taxes correctly. 1. What is Section 194LBA? Section 194LBA requires Business Trusts (like REITs/InvITs) to deduct tax at source (TDS) before distributing income to their unit holders. The tax treatment of the income depends entirely on its nature. Dividend from SPV (Special Purpose Vehicle): ...
Read more

Fix: Utilty says JSON Generated but no file in folder in ITR Excel Offline Utility

Fix: Utilty says JSON Generated but no file in folder in ITR Excel Offline Utility Many taxpayers have faced a frustrating issue while filing their Income Tax Return (ITR) using the Excel Offline Utility: The utility shows “JSON generated successfully” but no JSON file actually appears on the system. This issue is especially important for those filing ITR-U (Updated Return) since the Java Utility does not support ITR-U — you must use the Excel-based utility. Why Does This Error Happen? The Excel Offline Utility depends on certain Windows system components (.NET Framework). If they are disabled or missing, the utility cannot generate JSON files, even though it appears to run correctly. Step-by-Step Solution Follow these steps to resolve the error: 1. Open Windows Features Press Windows Key and search for “Turn Windows features on or off”. A new settings window will open. 2. Enable Required Options Tick the checkbox for .NET Framework 3.5 (includes NET 2.0 an...
Read more

ITR Forms for Lottery & Gaming Income

Can You File ITR-1 or ITR-4 with Lottery or Online Gaming Income? The simple answer is NO . Read further to understand why. Why Winnings from Gaming & Lotteries Require Specific Forms 1. Nature of Lottery / Gaming / Horse Race Winnings Income from: Lotteries, Crossword puzzles, Horse races Card games (like Junglee Rummy) Fantasy sports apps (Dream11, MPL, etc.) Any betting or gambling is taxed under Section 115BB of the Income Tax Act. Flat 30% tax rate (plus cess and surcharge) No deductions allowed (except TDS credit u/s 194B/194BB) This income is always reported under “Income from Other Sources”, never as Business Income . 2. Which ITR Forms Allow Such Income? ...
Read more