The residential status of a person under the Indian tax laws is governed by section 6 of the Income Tax Act, 1961. For purposes of taxability of a person’s income, a person can be a Resident (R), Resident but Not-ordinarily Resident (RNOR) and Non-Resident (NR). Once a person’s residential status is determined, his incidence of tax is easy to be calculated. The note slide below attempts to explain how a person can identify his tax liability under the Income Tax Act vis-à-vis his residential status for any financial year. The person here means an INDIVIDUAL. The method of determining residential status in case of a HUF, Firm and Company is not covered.