As per the provisions of section 2(29A) of the income tax act 1961, “Liable to tax,” in relation to a person and with reference to a country, means that there is an income-tax liability on such person under the law of that country for the time being in force and shall include a person who has subsequently been exempted from such liability under the law of that country.
Mr. X is residing in UAE for the past more than 10 years. He is an Indian citizen having income in India exceeding Rs.15 lacks during Financial year 2020-21. He stayed in India for less than 120 days during Financial year 2020-21. What will be residential status of Mr. X for Assessment year 2021-22 (Financial year 2020-21) as per the Income Tax Act 1961 keeping in mind the provision of section 6 as amended and the provision of section 2(29A).i.e. whether he will be treated as Non-Resident (NR) or he will be treated as Resident but Not-ordinarily resident.(R but NOR)?
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