Let's analyze both scenarios for determining the residential status of X for Assessment Year (AY) 2020-21 under Indian Income Tax rules.

Basics of Residential Status under Indian Income Tax:

An individual is considered Resident in India if any one of the following conditions is satisfied during the financial year (FY):

1. Stay in India for 182 days or more, OR

2. Stay in India for 60 days or more and total stay in preceding 4 years is 365 days or more.

If none of the above is satisfied, the person is considered Non-Resident.

Additional rules apply for Person of Indian Origin (PIO) and Indian Citizens visiting India, but here X is a foreign citizen (not PIO), so 60 days is not applicable, and the first condition (182 days) is the main criteria.

Scenario 1:

• X born in Jaipur in 1995, migrated to America in July 2010, took American citizenship from Oct 15, 2015.

• Visits India in 2019-20 for 120 days.

• Stayed in India for 300 days during April 1, 2015 to March 31, 2019 (previous 4 years).

• Parents & grandparents born in India (but X is a foreign citizen, not PIO).

Question: What is X’s residential status for AY 2020-21?

Step 1: Is X an Indian citizen or PIO?

• No, X is a foreign citizen (US citizen).

Step 2: Days stayed in India during FY 2019-20 (1 April 2019 to 31 March 2020)

• 120 days (as given)

Step 3: Does X satisfy 182 days stay?

• No (120 < 182)

Step 4: Is X covered by the 60 days + 365 days in last 4 years condition?

• No, because this applies only to Indian citizens or PIOs, and X is foreign citizen (not PIO).

• So the 60 days condition is not applicable here.

Conclusion:

• X does not satisfy any condition for being Resident in India.

• X is a Non-Resident Indian (NRI) for AY 2020-21.

Scenario 2:

• X is a foreign citizen (not PIO).

• Left India for the first time in last 10 years on July 20, 2017.

• Calendar Year 2018: Came to India for 40 days (Sept 1 to Oct 10 approx.).

• Calendar Year 2019: No visit.

• Came to India on March 25, 2020.

• Find residential status for AY 2020-21.

Step 1: Calculate stay in India during FY 2019-20 (Apr 1, 2019 to Mar 31, 2020):

• Came on March 25, 2020 and presumably stayed till at least March 31, 2020 = 7 days.

Step 2: Is X Indian citizen or PIO?

• No, foreign citizen, so 60 days rule doesn’t apply.

Step 3: Does X satisfy 182 days stay in India during FY 2019-20?

• No, only 7 days stay.

Step 4: Check for previous 4 years stay (2015-16 to 2018-19):

• Left India first time in last 10 years on July 20, 2017, so he must have been resident before that, but the stays in 2018 and 2019 are very short.

• No further info on stay from 2015 to 2017, but since he left first time on July 20, 2017, he was resident till then.

However, since the rule for foreign citizen is just stay of 182 days in FY to be resident.

Conclusion:

• For FY 2019-20, stay in India is only 7 days.

• Hence, X is Non-Resident for AY 2020-21.

Summary: