Query on Taxability of Income based on Residential Status

Tax planning 575 views 5 replies

Hi Friends,

Needs your suggestion and advise on how save Tax in the following scenario : - 

1. I will leave India on 3rd Oct 2011 for US for long term exployment on H1 visa

2. I've never gone ouside india before.

Is there any way to avoid becoming orinary resident ( to save tax payable in India on foreign income) as my stay during PY 2011-2012 wud be 185 days which is more than 182 days as per IT Act. 

Pls dont suggest abt DTAs , I do not want to go into those complications.

Thanks in advance for your reply.

 

Regards

Ramesh

Replies (5)

he falls in the exeception:- citizen of indian origin visiting india in pri. yr. den (b) basic condition is not applicable and u r satisfying only 1 basic cond. since ur stay in p.y is exceeding 182 days..i.e. 185 days.

         thus resident.

he is also satisfying both the additional cond.

he is resident in 7 yrs out of the 10 yrs preceeding p.y.  he has left india in the 1st time

his aggregate stay in the 7 yrs preceeding p.y.  exceed 730 days

thus ordinarly resident..

may it will help u dear..

My query is there any way out to avoid becoming ordinary resident.

Regards

Ramesh

visit any neighbouring courty for 1 week under stamp on your passport, this will reduce your stay in india.

or leave india 4 days prior to your schedule, to reduce your stay in india, 

Hi Mr Sharma,

Thnx for your reply.

Are you sure about - "visit any neighbouring courty for 1 week under stamp on your passport, this will reduce your stay in india" will be considered and reduce my period of stay in India.

Can you Please refer me any Rule/case law where this has been the case and upheld.

As per US visa rules I cannot land in US before 1st Oct (which is cycle for H1b work permit) , Even then from 1 april-30 sep its 183 days.
It is possible to depart say in last week of sept (say 27 sept)from India, spend 2-3 day in dubai & then depart to US ,will it be OK from IT Act point of view?

Thnx for your response.

Regards

Ramesh

for calculating your stay in india, the immigration stamp for departure is counted ..........

balance provisions are as per rule .............

 

now it depends on individual merit that savings are more than spendings of such stay or not :)


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