Choice of residential status under Tax Liability Based on Residential Status : 

An assessee can change his residential status by changing the place of control and management of the affairs of the business (in the case of persons other than individuals) or by increasing or decreasing the number of days of stay in India (in the case of individuals). This may be done from the point of view of what is beneficial to him. In this context it may be kept in mind that if the foreign collaborator is incurring losses outside India, a change in status from non-resident to resident would allow the losses incurred outside India to be set off against income earned in India.