Ordinary Resident

An Ordinary Resident is an individual who meets specific residency criteria under tax laws and is considered resident in a country for tax purposes, typically for a continuous period, and whose global income may be taxable in that country. Residency rules generally consider: Physical presence in the country during the current year and preceding years Intention to reside or maintain a home in the country

Key Features:

1. Global Taxation
2. Ordinary residents are usually taxed on income earned both within and outside the country.
3. Contrast with Non-Resident and Resident but Not Ordinarily Resident (RNOR)
4. Category Tax Scope
5. Ordinary Resident Worldwide income
6. Resident but Not Ordinarily Resident (RNOR) Domestic income + foreign income under certain conditions
7. Non-Resident Only domestic-sourced income

Determining Factors: Number of days spent in the country in the current and preceding years Intention to maintain permanent residence

Example: An individual lives in India for more than 182 days in FY 2022-23 and has been resident for several preceding years: Considered an Ordinary Resident for AY 2023-24 Taxable on global income, including income earned abroad