Resident indian or not.

Hi, Can someone please assist me with my question below.

" My daughter moved to India on Jan 29 of this year, she intends to stay in India until September 1 of this year and then head back for good. She has no Indian income , is a American Citizen ,her only income is American Income , according to my understanding since she is not spending more than 182 in a financial year and hence does not need to file her tax returns in India for 2012-13 financial year. Can you please clarify the same , I would greatly appreciate it.

 

 

 

Replies (1)

As per Section-6 (1) of the Indian Income Tax Act 1961,  an individual is said to be resident in India in any previous year, if he or she :-

 

(a) is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or

(b) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.

 

Further as per Section - 5 (2) : Subject to the provisions of this Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which—

 

(a)  is received or is deemed to be received in India in such year by or on behalf of such person ; or

(b)  accrues or arises or is deemed to accrue or arise to him in India during such year.

*********

 

If your daughter does not fulfill any one of the above two conditions of resident in India as stated above in Sec-6(1) during the financial year 2011-12 and 2012-13, and further she has no income from India  which is received of deemed to be received in India or accrues or arises or deemed to accrue or arise in India during such financial year, in my opinion she is not required to file Income Tax Returns in India for that financial year.

 

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