Salary of a person staying in India for more than 182 days being Resident is subject to Income tax

Last updated: 22 September 2021

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This judgement clarifies that if an individual stays in India for 182 days or more in a financial year, they are considered a "Resident" for tax purposes under the Income Tax Act, 1961. Consequently, their global income, including salary earned abroad, becomes subject to Indian income tax. The Calcutta High Court upheld this principle, dismissing a petition where the individual failed to provide timely evidence and challenge assessments through proper legal channels.

Court :
Calcutta High Court

Brief :
In Tapas Kumar Basak v. Assistant Director of Income Tax, International Taxation-II &Ors. [W.P.O. No. 931 of 2007, dated September 16, 2021], Tapas Kumar Basak("the Petitioner")has challenged the impugned order dated January 25, 2007 passed by the Director of Income Tax (International Taxation), Kolkata ("the Respondent")treating the Petitioner as "Resident" for having stayed in India for 182 days during the relevant previous year as per Section 6(1)(a)of the Income Tax Act, 1961 ("the IT Act")The Assessing Officer brought the entire salary of the Petitioner amount to Rs. 12,26,822/- under the tax net as the global income of the resident as taxable while it is the claim of the Petitioner that it is not taxable by taking the ground that during the financial year relevant to the assessment year 2004-05 he was on foreign water for a total period of 184 days and his residential status should have been taken as "Non-Resident" and salary received by him should have been treated as exempted by relying on Circular No. 586 dated November 28, 1990which is calculable for the crew members.

Citation :
W.P.O. No. 931 of 2007, dated September 16, 2021

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