What is residential status of expatriates in india

As per companies act
Resident for the purposes of Part I of Schedule XIII (Companies Act) includes a person who has been staying in India for a continuous period of not less than 12 months preceding the date of appointment as a managerial person and who has come to India (1) for taking up employment in India, or (2) for carrying on a business or vocation in India. Appointment of any person who is not a resident in India requires the approval of the Centre. Most often, appointment of a foreign national as a managerial person may require the Center’s approval either because he is not a resident or his remuneration exceeds the limits prescribed under the Schedule XIII.

FEMA (Exchange control act)
Generally, a foreign national is understood to be a non-resident. In terms of Section 2(v) of FEMA, a person will be a resident in India only if he resides in India for more than 182 days during the course of the preceding financial year. However, exception to this general rule is made for any person who comes to India for employment or business or other reasons indicating his intention to stay in India for uncertain period. Such persons become resident immediately for the purposes of FEMA, no matter they have not stayed in India for 182 days. Thus, a foreign national seeking employment in India becomes a resident under exchange control law.
Foreign nationals thus resident could be 'persons not permanently resident' in India -- yet another category defined under FEMA. `Person not permanently resident' means a person resident in India for employment of a specified duration or for a specific j ob or assignment, the duration of which does not exceed three years. The significance of this category of persons is that they are not subject to restriction on remittance of exchange facilities for their relatives abroad.
It is usual practice to employ whole time director or managing director by limited companies for a term of five years. In order to avail the benefit of persons not permanently residing in India, the contract of employment/resolution of the company shall expressly state the following: (1) duration of service not exceeding 3 years, and (2) the specific job or assignment.

Income tax Act
As in most of the countries, the liability under the Indian income tax law is also co-related to the residential status of the concerned tax payer. Section 6 of the India income-tax status creates 3 categories as far as residential status is concerned.

Resident: An Individual is said to be resident in India in any previous year if he is in India for at least 182 days in that year or during that year he is in India for a period of at least 60 days & has been in India for atleast365 days during the 4 years preceding that year. However, the period of 60 days referred to above is increased to 182 days in case of Indian citizens who leave India as members of the crew of an India Ship of for India citizens or persons of Indian origin who, being outside India, come to visit India in any previous year.

Non- Resident: A person who is not a resident in terms of the above provision is a non-resident.

Resident but Not Ordinarily Resident (RNOR)
A person who is otherwise resident as defined in Para 10.2.1 would be RNOR if he satisfies any of the following two conditions:
(i) He has not been resident in India in 9 out of 10 preceding previous years.
Or
(ii) He has not been in India for an aggregate period of 730 days or more in the preceding 7 previous years.
W.e.f. 01.04.2004, the status 'RNOR' has been redefined as follows:-
An individual shall be said to be RNOR if he has been a non-resident in India in 9 out of 10 previous years preceding that year or has been in India for a period amounting to 729 days or less during the 7 previous years preceeding that year.

Scope of Taxation
Based on the residential status of payer, his tax liability will be as follows:-