Residential Status determination

Dear Sir 

 

I am PSU employee in Delhi. I was posted in EIL Abu Dhabi ( as detailed below)  . I want to know whether I will be Resident or NRI for FY 2020-21.

 

CASE 

I  went to our Abu Dhabi office in July 2019 on 2 year deputation. When I was in Abudhabi my Indian salary was paid in foreign currency and was no income tax was applied. I was NRI for FY 2019-20. 

I returned to India in Jan. 2021 due to illness. I underwent medical treatment (records available ) for 1 month in India and joined Delhi office permanently in Feb.2021.  I spent 83 days in India in the FY 2020-21.

My employer has considered me as Resident and deducted tax for all my Income, throughout the year FY 2020-21.

My Indian income in FY 2020-21 is less than 15 lacs 

I did not return back to Abudhabi . Please help me in ascertaining  my residential status for FY 2020-21 .

Hope you will consider the latest circular dt. 3rd March 2021 from Income tax department also. circular enclosed.

Other facts

1.   I have been in India for more than 365 days in the last 4 years

2.    I have been in India for more than 2 years in the last 10 years.

3. I have been in India for more than 7 years in the last years. 

 


Attached File : 3340527 20210616134230 residency circular 02 of 2021.pdf downloaded: 47 times
Replies (2)
Quick Summary
This discussion seeks clarification on an individual's residential status for the Financial Year 2020-21. The individual, an employee of a PSU, was on deputation in Abu Dhabi and returned to India in January 2021, spending 83 days in the country during FY 2020-21. They are unsure whether they qualify as a Resident or Non-Resident Indian (NRI) for tax purposes, especially concerning how their Indian income is calculated and whether recent tax department circulars apply.

As I understand, you will not be resident for FY20-21 because you have not stayed in India for >=182 days during FY20-21.

Thank you madam. 

The calculation of Indian come for above purpose is not clear to me. Whether Indian income is determined by amount credit in Indian Bank Account or Amount mentioned in Form 16 ?. In my case, the amount was credited in Abudhabi bank account in foreign currency. But employer considered it as Indian income because they consider me as Resident for FY 2020-21.

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