Very urgent query

Hi all,

Its a very urgent query so it would be very helpful if someone can answer it ASAP.

I am an Indian citizen and have taken employment abroad in SIngapore since Jan 2014. But I will need to travel back to India in October and will probably be spending the rest of the duration of Fin. year 2014-15 (October to March) in India. Now I had raised a query earlier about my tax liablities in India for both Fin. years 2013-14 and 2014-15.

As I spent about 9 months in India in the fin. year 2013-14, therefore I am a tax resident for tax purposes.

According to the law:

Under Section 6(1), an individual is said to be resident in India in any previous year if he satisfies any one of the following basic conditions:

• He is in India in the previous year for a period of at least 182 days or,
• He is in India for a period of at least 60 days during the relevant previous year and at least 365 days during the four years preceding that previous year.

Now for people going abroad for employment there is an exception to the second clause in which 60 days is substituted by 182 days.

Thus when I had raised this query on CAClunIndia forums earlier, I was told that in accordance of this exception, for the Fin. year 2014-15, I would be a NRI for tax purposes as I am going to spend less than 182 days in India (as I am going to return in October). Hence the income in Singapore would not be taxed in India.

But very recently I found out that the exception to the law is as follows:

"A resident of India being Indian citizen leaving India for taking up employment or joining as a crew of a ship will be treated as a Non-Resident if his stay in India in the year of departure did not exceed 181 days."

Therefore the changed clause from 60 days to 182 days is only applicable to FY 2013-14, as I departed for employment in Jan 2014.

But for FY 2014-15, the original 2 clauses will be used to determine the resident status, therefore as I am going to soend more than 60 days in India for FY 2014-15, I become a tax resident and therefore will have to pay tax on the income earned in Singapore also for the duration of April to October despite my stay being less than 182 days in India for this FY 2014-15.

I am not getting conclusive answers as different sources are giving different information. I sincerely hope to receive the detailed answer ASAP as its urgent for me.

Hope the query is explained clearly. For any further doubts in understanding the query, please feel free to post it.

Thanks in advance.

Regards

SHIRISH TULSIAN