Resident status u/ it act

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Sharad

Associate

35 Points Joined November 2013

Hi – I took up an employment outside India from August 2013. However, I don’t have a work permit yet, and I am currently working (and likely to work until March 2014) on a Business Visa. I will not be a resident under Section 6(1)(a) of the IT Act. My query is whether I can be considered a "resident" under Section 6(1)(c) of the Act? Will the benefit of explanation (a) to Section 6 be available to me? Can I be considered to have left India "for the purposes of employment outside India" even though I do not (and will not) have a work permit till March 2014? All salary from my current employer (since August 2013) is being paid and received outside India.

Thanks,

Sharad

Replies (2)

Guest

yes you can avail the benefit of exemption.

Moreover, onus to prove the residencial status is on department.

Best Regards

CA Ashish Barthwal

Sharad

Associate

35 Points Joined November 2013

Thanks Ashish.

So essesntially, even if do not have a work permit, I will be considered to have left India "for the purposes of employment outside India".
Given that I will be spending more than 180 days outside India in FY 2013-14, will my income received outside India subject to tax in India? I have rental and investment income in India for which I will need to do tax filings in India. Do I need to disclose/ report the foreign income in the tax filings?

thanks,
Sharad