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Residential status

16 January 2020

Mr. Raman an Indian citizen left india on 22.9.2019 for the first time to work as an officer of a company in Germany. Determine the residential status of ram for the assessment year 2020-21 and explain the conditions to be fulfilled for the same under the income tax act 1961

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3 Replies

Sunil Ahmad (Student) (1511 Points)
Replied 16 January 2020

Must be present 182 or more during the FY.
he did not qualify the basic condition. he is non resident.
1-4-2019 to 22-09-2019 = 175 days.

CA Arun Tiwari (Partner) (3930 Points)
Replied 20 January 2020

Mr. Raman is Non-Resident as he left India for the purpose of Employment outside India and he did not reside in India for 182 days in AY 2020-21.

As per Income Tax Act, 1961 if any person leaves India for the purpose of employment then he needs to satisfy only one condition to be declared as resident i.e. he needs to live in India for at least 182 days in the relevant previous year.

Kamlesh Batra (CA) (61 Points)
Replied 21 January 2020

Mr. Raman did not reside atleast 182 days in previous year as he left India for employment therefore he is not considered as resident in AY 2020-21
However If he is
resident of India previous 9 years out of 10 previous years or reside in India 765 days in 7 previous years then he will be considered as Resident but not ordinary resident i.e (RNOR) AY 2020-21.

Thank you.