Solve this FEMA Question

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A question from FEMA 1999-

A person was a residence in India for whole of the financial year 1999-2000. As on 01.04.2000, the same person goes out of india for taking employment there...what will be the his residentail status for 2000-2001 ?

According to me it should be Resident in India for 2000-2001, bcoz we have to consider the previous year i.e. 1999-2000 during which he was resident in India.

Had he been left India on or before 31.03.2000, then he would be resident outside india for 2000-2001 ...

plz tell me the asnwer ? 

Replies (13)

Dear Sahil,

Generally as per Fema 1999, if any person residing in india for more than 182 days during the preceding F.y , then he is treated as 'Person residing in India' i.e. 'Resident' under Fema....now in ur case the person resides in india for the whole year in the preceding F.y 1999-2000 and left india for taking up employment abroad on 01.04.2000 i.e. in the next F.y and not in preceding F.y....hence in F.y 2000-2001 he is Resident as he resides in india for whole year i.e.  more than 182 days in F.y 1999-2000...

Secondly, in case he went to abroad for taking employment on or before 31.03.2000 i.e. in preceding F.y 1999-2000 then he becomes non resident although he was in india for more than 182 days in the preceding year 1999-2000.

Hence in first case he is 'Resident' and in second case he is 'Non resident'....

Hope ur query remains solved now....In case u hv any further query in Fema, 1999, feel free to ask me...

REGARDS

RAGHAV

it's very strange . . .though i agree with all ur answers . . .if u see munish bhandari buk, all answers r contradictory . . It say's that he is non resident for 2000-2001
how can such a gud buk do that mistake

not even module has specified about this kind of cases ?

means u r saying that as per d book, in both cases he is non resident??????? but my ans. is fully right....

yes sir,,,,,u r right ...if u r having that buk than book at the questions given

r u talking about munish bhandari handbook???????? or d main book???

munish bhandari buk ...see any question similar to one related to my example...all the answers r contradictory

i dont come across any similar ques. in handbook wherein two dates r given, i.e 1st april n 31st march ???????

okay..refer Question 4L part (C) or near to that in new edition....mine is  9th Edition....question is related to Mr. harsh  

did u find that question ?

As per sec 2(v), 

 

 

"person resident in India" means—

 

 

(i)

a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include

 

 

 

(A) 

a person who has gone out of India or who stays outside India, in either case—

 

 

 

 

(a)

for or on taking up employment outside India, or

 

 

 

 

(b)

for carrying on outside India a business or vocation outside India, or

                              (c) for any other purpose, in such circumstances as would indicate his intention                                         to stay outside India for an uncertain period.............

Since the assessee had gone out of India for taking up employment, he would straightaway be regarded as a non-resident.

@ sahil- actually i hv 8th reprint edition only wherein i didnt find any such ques.....urs is 9th edition so probably ques. is there on it........but will u tell me d language of answer mentioned in ur book.......let me interpret d meaning of it too....


CCI Pro

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