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nism-series-xb-resident-status-test-section-6-income-tax[ INVESTMENT ADVISER (LEVEL 2) ]

Under Section 6 of the Indian Income Tax Act, how is an Indian citizen who returns to India during a financial year determined to be a 'Resident' for tax purposes?

[ A ]Exclusively by presenting an Indian passport at customs regardless of stay duration
[ B ]By maintaining an active Aadhaar card in India
[ C ]Only if they purchase a residential property in India within 30 days
[ D ]If their total physical stay in India is 182 days or more in the relevant previous year, or if they meet specified secondary stay conditions (60 days in current year and 365 days in 4 preceding years)[ CORRECT ]
Takeaway

An Indian citizen is a Resident under Section 6 if they stay 182 days or more in the financial year, or meet the alternate 60-day-plus-365-day test across four preceding years, so option D is correct.

Derivation
Section 6(1) sets out two independent physical-presence tests: staying in India for 182 days or more in the relevant financial year, or staying 60 days or more in the current year combined with 365 days or more across the preceding four financial years (with specific relaxations for certain visiting Indian citizens/PIOs). Meeting either test makes the individual a 'Resident' for that year; further sub-tests then determine whether they are ROR or RNOR. This tests the foundational residency-status framework that underpins every subsequent taxation question in this case study, since none of the other criteria offered — passports, Aadhaar, or property purchase — have any bearing on tax residency under the Act.
Why the others fail
A — Exclusively by presenting an Indian passport at customs regardless of stay duration
Citizenship, evidenced by holding an Indian passport, is legally distinct from tax residential status; presenting a passport at customs does not by itself confer resident status.
B — By maintaining an active Aadhaar card in India
Aadhaar card possession has no bearing on income tax residency status determination under Section 6.
C — Only if they purchase a residential property in India within 30 days
Purchasing real estate in India has no bearing on the physical-stay-based tax residency tests laid out in Section 6.