Quick Summary
Circular No. 2 of 2021 F. No. 370142/18/2020-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 3rd March, 2021 Residential status of certain individuals under Income-tax Act, 1961 Section 6 of the Income-tax Act, 1961 (the Act)
Daily Limit Reached
You have reached your daily limit of 2 Free Notice & Circular
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Notice & Circular Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
FAQ :
The circular clarifies the determination of residential status for individuals under the Income-tax Act, 1961, addressing the impact of COVID-19 on previous years 2019-20 and 2020-21.
Yes, for individuals who came to India before 22nd March 2020 and were unable to leave due to the pandemic, certain periods of stay (from 22nd March 2020 to 31st March 2020, or quarantine periods) were not counted for determining residential status.
Generally, a short stay in India during the previous year 2020-21 due to being stranded by the pandemic is unlikely to result in acquiring Indian residency, provided specific conditions are met.
They become a resident if their Indian source income doesn't exceed ₹15 lakh and they stay 182+ days, OR if their Indian source income exceeds ₹15 lakh and they stay 182+ days, or stay 120+ days in 2020-21 and 365+ days in the preceding four years.
They become a resident if they stay 182+ days in 2020-21, or stay 60+ days in 2020-21 and 365+ days in the preceding four years.
CAclubindia
Guest
Notification No : Circular No. 2 of 2021Published in Income Tax
Source : https://www.incometaxindia.gov.in/Communications/Circular/residency-circular-02-of-2021.pdf