Residential status

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38 Points Posted on 14 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. What would be my residential status for FY 2018-19?

I was in India before Dec 2017 for the previous 10 years

Replies (3)

Prasanth Surya

24 Points Posted on 14 August 2019

Irrespective of the previous year you leave India, you would be considered as resident only if you are in India for a period of 182 days or more in the FY 2019-20. In respect of FY 2018-19, you would be considered as a resident as you were in India for a period exceeding 182 days.

my account

38 Points Posted on 14 August 2019

Hi Prasanth,

1. For FY 2019-20, 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

2. For FY 18-19, as I mentioned in the question, I was out of India from NOV 2017 to NOV 2018, so I was in India for less than 182 days, would that mean non resident?

Thank you for your response.