Residential status ...

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This discussion clarifies Indian tax residency for individuals who go onsite in FY 2022-23 and return after March 31, 2023. It explains the conditions for being considered a resident, including the 182-day stay rule and specific exceptions for citizens leaving India for employment. Recent amendments from FY 2020-21 are also highlighted, particularly concerning total income thresholds and tax liability in other countries.

ragini jain

ragini jain (Querist)

01 July 2023 What is the Residential status of a person if he goes onsite in August in FY 22-23 and returns after 31, March 2023 to file ITR in India?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

01 July 2023 It can only be confirmed by its stay in preceding four years.

Individuals are deemed to be residents of India under Section 6(1) of the Income Tax Act if they meet the following conditions:
If he/she stays in India for 182 days or more in a fiscal year, or
if he/she stays in India for 60 days or more in a fiscal year, and if he/she stays in India for 365 days or more in the four years immediately before the previous year and comes under ordinary resident in income tax.

ragini jain

ragini jain (Querist)

01 July 2023 Sir, If an Indian citizen leaves India during the PY for employment outside India so the 2nd Condition is not applicable. So why do we check to stay in the preceding 4 years??

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

01 July 2023 In the event an individual who is a citizen of India leaves India for employment during an FY, he will qualify as a resident of India only if he stays in India for 182 days or more. Such individuals are allowed a longer time greater than 60 days and less than 182 days to stay in India.
However, from the financial year 2020-21, the period is reduced to 120 days or more for such an individual whose total income (other than foreign sources) exceeds Rs 15 lakh.

In another significant amendment from FY 2020-21, an individual who is a citizen of India who is not liable to tax in any other country will be deemed to be a resident in India. The condition for deemed residential status applies only if the total income (other than foreign sources) exceeds Rs 15 lakh and nil tax liability in other countries or territories by reason of his domicile or residence or any other criteria of similar nature.

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