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India residential status

20 August 2019

Hi, 1. I came to USA for Employment in March 2019 and my assignment is planned to complete by mid October 2019 post which I will return to India. Would I be considered Resident or Non Resident for FY 2019-2020? Is the status determined based on the year you leave India? As I left India in March 2019, would the rule of 182 days apply for FY 2019-2020? Is Explanation applicable only to the financial year in which the person leaves India for employment?

2. I was also in US from November 2017 to November 2018. I was in India before Dec 2017 for the previous 10 years

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12 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 20 August 2019

1. For FY 2019-20 (returning back in mid October), your stay will be less than 182 days in India. Being left India for employment; (as per the explanation) you will be considered NRI.

my account (18 Points)
Replied 20 August 2019

Thanks Sir for your kind response. I referred to following text from explanation 1:

Explanation. 1— for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted ; Please let me know the impact of word 'that year' in this statement

Please let me know the impact of word 'that year' in this statement. Does this condition of 182 days apply only if you leave in the same financial year?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 21 August 2019

In Same Financial Year.

my account (18 Points)
Replied 22 August 2019

Thanks sir. Based on your response, from 1st March 2019 and returning in 30th October 2019, person would be a resident irrespective of less than 182 days in India.

Is this understanding correct?

Thanks for your time.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 22 August 2019

When an individual is said to be 'Resident' in India ?

An individual is said to be resident in India if he satisfies any one of the following two conditions:

He is in India for a period or periods amounting in all to 182 days or more in the relevant previous year;

He is in India for 60 days or more during the relevant previous year and has been in India for 365 days or more during 4 previous years immediately preceding the relevant previous year.

Exceptions/Concession: There are two exceptions/concession to the above rule:

In case of an individual, who is a citizen of India and who leaves India in any previous year for the purposes of employment outside India, the condition No. 2 supra (mentioned above) shall not be applicable for the relevant previous year in which he leaves India. In other words, for that particular previous year in which he leaves India for the purposes of employment outside India he shall be called resident only when he satisfies the condition No. 1 mentioned above. Similarly in case of an individual who is a citizen of India and who leaves India in any previous year as a member of the crew of an Indian ship, the condition No. 2 supra shall not be applicable.
In case of an individual, who is a citizen of India, or is a person of Indian origin, who, being outside India, comes on a visit to India in any previous year, the condition No. 2 mentioned above in his case also shall not be applicable. In other words, he shall not be a resident in India unless his stay in India is at least 182 days during the relevant previous year in which he visits India.

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my account (18 Points)
Replied 23 August 2019

Thanks sir.

I am sorry, but I am again requesting for information. Based on your latest response, you mentioned :

In case of an individual, who is a citizen of India and who leaves India in any previous year for the purposes of employment outside India, the condition No. 2 supra (mentioned above) shall not be applicable for the relevant previous year in which he leaves India

1. Given I left in March 2019, the condition No. 2 supra would not be applicable for FY 2018-19 - Hope this is correct understanding.

2. For FY 2019-20, even I am out for employment since March 2019, the condition No. 2 supra would be applicable for FY 2019-20, YES/NO?. So if I return in Mid October 2019, I would be in India for more than 60 days (and and has been in India for 365 days or more during 4 previous years immediately preceding the relevant previous year) and would be Resident in India, YES/NO? Please correct where I am wrong

3. Essentially, I need to know this: Given I left in March FY 18-19, when would I be Non resident for FY19-20 without being out of India till March 31 2020? If I am in India for less than 60 days in FY19-20 (return by Mid Feb 2020), would I be Non resident?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 23 August 2019

Don't mix up days of different Financial Years.

Clarify your status Employment or jobless.....

The criteria changes with these parameters....

my account (18 Points)
Replied 23 August 2019

Sir, I left India for Employment and current status is Employment. I plan to return to India. So wanted to know when would I be termed as NRI for taxation. Return in October 2019 or February 2020?