- The Assessing Officer’s counts were 195, 192 and 184 days across the three assessment years.
- After recalculation, the stays measured 180, 175 and 173 days.
- Section 6 of the Income-tax Act, 2025 has governed residency since April 1, 2026.
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The Delhi Income Tax Appellate Tribunal excluded an individual’s arrival day when calculating his stay in India and held him non-resident for AY 2017-18, AY 2018-19 and AY 2019-20. The decision is dated November 2, 2026, though the exact date has not been independently confirmed.
The taxpayer worked in the UAE and travelled frequently to India. The decision applies to his three years; it does not establish an automatic exemption for every traveller.
The tribunal treated the first day of a stay period differently from its last. The statute itself was not amended by this ruling.
The taxpayer’s UAE work and travel records framed the dispute
The Assessing Officer counted both the day the taxpayer arrived in India and the day he left. That calculation put him above the threshold in each year, so the officer treated him as resident.
The taxpayer challenged the inclusion of his arrival dates. He relied on an employment contract, a work permit and a UAE residence ID card to support his position that he lived and worked overseas.
The tribunal’s reported legal reasoning drew on Section 9 of the General Clauses Act. That provision says that when a period runs from one day to another, the first day is left out and the final day is included. The tribunal also referred to earlier judicial decisions applying that approach to days spent in India.
The treatment of the final day remained unchanged. The dispute concerned the day of entry.
Removing arrival dates put all three totals below 182 days
| Assessment year | Assessing Officer’s count | Count after excluding arrival dates |
|---|---|---|
| AY 2017-18 | 195 days | 180 days |
| AY 2018-19 | 192 days | 175 days |
| AY 2019-20 | 184 days | 173 days |
Each revised total was below the applicable threshold, leading to the non-resident finding for those years. But that figure is not the only route used to determine Indian tax residency.
For the years at issue, the relevant provisions were Section 6(1) and Explanation 1 to Section 6(1) of the Income-tax Act, 1961. The general tests included a stay of 182 days or more in the relevant year, or at least 60 days in that year together with 365 days over the preceding four years. Exceptions modify how those thresholds apply to some people.
From April 1, 2026, Section 6 of the Income-tax Act, 2025 governs the residency test. Its Section 6(2)(a) contains the 182-day condition, while Section 6(2)(b) sets out the 60-day and 365-day test. For citizens of India and persons of Indian origin visiting from abroad, Section 6(4) replaces the 60-day limb with 182 days. If income other than foreign-source income exceeds ₹15 lakh, Section 6(5) instead sets a 120-day threshold.
The ruling interprets the statute rather than amending it
The Income-tax Act does not spell out this particular method for counting entry and exit dates. The tribunal’s decision is therefore an interpretation applied to the taxpayer’s case, not a new formula written into the law.
An ITAT ruling does not bind every other tribunal bench or the Income Tax Department. The department may challenge the method in an individual dispute. An Authority for Advance Rulings decision has supported counting both the arrival and departure dates, while a Bangalore tribunal decision has also excluded the entry date.
Residency can also turn on other statutory conditions. A result below the relevant day-count threshold alone does not settle every taxpayer’s status, and residency affects which income may be taxable in India. The applicable tests depend on the person’s circumstances and the tax year.
Travel records can show how close a count is to the threshold
Travellers should keep a dated log and compare it with passport stamps, e-gate records, boarding passes, tickets and immigration records. Preserve records for the current year and the four preceding years, where relevant.
Overseas employment and residence evidence can help document the taxpayer’s circumstances. Keep employment contracts, work permits, residence cards and salary statements together with travel records.
Calculate the stay both including and excluding entry dates. A small difference can change the result when a person is close to a threshold, so retain the documents behind each count.
