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Point no 2 for determining the residential status?

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nikky (Querist)

16 July 2019 I was going thru the way to determin residential status.

You are considered an Indian resident for a financial year:

i. When you are in India for at least 6 months (182 days to be exact) during the financial year

ii. You are in India for 2 months (60 days) for the year in the previous year and have lived for one whole year (365 days) in the last four years

Could somebody explain me point number 2 ? For whom this rule applies?

swasti

swasti (Expert)

16 July 2019 Actually this time in the ITR, the residential status of an individual is also to be defined. Accordingly one has to pick an option why he is a Resident. Point No. 1 is very clear that if you remain in India during a financial year for 182 days or more, you are having a status of Resident.

Point No. 2 says that if you have gone abroad, but during any FY you are in India for 60 days AND 365 days in a period of 4 years prior to that Financial year, even then you are a Resident as per Income Tax Act 1961 and your global income would be taxed accordingly.

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