Residential Status

Determination of Residential status of Foreign Citizen in India as per Income Tax Act

Income Tax - Determination of Residential status of Foreign Citizen in India as per Income Tax Act Step 1: First of all we have to identify whether the person is Resident Indian or Non- Resident Indian: An individual shall be treated as Resident in India if he satisfies any one of the below mentioned conditions: a) If, he/she […]...

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Amendments in Residential status provisions – Impact on sea fearers

Income Tax - One of the major changes in the Finance Act, 2020 (‘FA, 2020’) is with respect to amendments in residential status criteria, which directly impacts the Non Resident Individual (NRI) community. Various news articles had spread wrong stories wherein they had stated that new amendments in FA 2020 will affect the taxation of salary receiv...

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Residential Status and its impact on an Individual’s Income

Income Tax - Different countries adopt different principles to tax the Income of an Individual. There are three main principles adopted globally to tax the Income of an Individual – Residence principles, Source principles, and Citizenship principles. In India, An individual’s income is taxed based on its residential status for any particul...

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Residency Rule Dilemma

Income Tax - *Yashish Sharma Determining the residential status for income tax purposes is a big challenge for this financial year and a part of the previous financial year. This has been a topic of debate as many non – residents had to extend their stay in India, in view of the lockdown and resultant suspension of international […]...

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Residential Status under Income Tax Act, 1961-update

Income Tax - The residential status of a person must be derived with reference to each previous year. He is Resident if any of the following 2 conditions are satisfied: a. He has been in India for a total period of 182 days or more during the previous year. b. He has been in India for a total […]...

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Scope of income and Residence in India | Section 5 & 6

Income Tax - Section 5- Scope of income – Income Tax Act, 1961 5. [1] the total income of any previous year of a person who is a resident includes all income from whatever source derived which— [a] is received or is deemed to be received in India in such year by or on behalf of such person […]...

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Suggestion /representation on 7 Important Direct Tax Issues

Income Tax - Following is the summary of Suggestion /representation on behalf of the taxpayers/professionals in connection with the Direct tax related matter. Detailed reasoning of same is provided in subsequent paragraphs....

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Recent Posts in "Residential Status"

Determination of Residential status of Foreign Citizen in India as per Income Tax Act

Determination of Residential status of Foreign Citizen in India as per Income Tax Act Step 1: First of all we have to identify whether the person is Resident Indian or Non- Resident Indian: An individual shall be treated as Resident in India if he satisfies any one of the below mentioned conditions: a) If, he/she […]...

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Posted Under: Income Tax |

Amendments in Residential status provisions – Impact on sea fearers

One of the major changes in the Finance Act, 2020 (‘FA, 2020’) is with respect to amendments in residential status criteria, which directly impacts the Non Resident Individual (NRI) community. Various news articles had spread wrong stories wherein they had stated that new amendments in FA 2020 will affect the taxation of salary receiv...

Read More
Posted Under: Income Tax |

Residential Status and its impact on an Individual’s Income

Different countries adopt different principles to tax the Income of an Individual. There are three main principles adopted globally to tax the Income of an Individual – Residence principles, Source principles, and Citizenship principles. In India, An individual’s income is taxed based on its residential status for any particul...

Read More
Posted Under: Income Tax |

Scope of income and Residence in India | Section 5 & 6

Section 5- Scope of income – Income Tax Act, 1961 5. [1] the total income of any previous year of a person who is a resident includes all income from whatever source derived which— [a] is received or is deemed to be received in India in such year by or on behalf of such person […]...

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Posted Under: Income Tax |

Suggestion /representation on 7 Important Direct Tax Issues

Following is the summary of Suggestion /representation on behalf of the taxpayers/professionals in connection with the Direct tax related matter. Detailed reasoning of same is provided in subsequent paragraphs....

Read More
Posted Under: Income Tax |

Residency Rule Dilemma

*Yashish Sharma Determining the residential status for income tax purposes is a big challenge for this financial year and a part of the previous financial year. This has been a topic of debate as many non – residents had to extend their stay in India, in view of the lockdown and resultant suspension of international […]...

Read More
Posted Under: Income Tax |

Residential Status under Income Tax Act, 1961-update

The residential status of a person must be derived with reference to each previous year. He is Resident if any of the following 2 conditions are satisfied: a. He has been in India for a total period of 182 days or more during the previous year. b. He has been in India for a total […]...

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Posted Under: Income Tax |

How to Check Residential Status of an Individual & Taxability of Their Income?

A Brief Discussion about the Residential  Status of an individual and taxability of income according to their residential status in India Taxability In India, income is taxable is based on their residential status, so it is very important to know about residential status of any individual to check the taxability of income. Let’s know: ...

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Posted Under: Income Tax |

Residential Status- Genesis of Income Tax Computation (PY 2020-21)

We all are no stranger to the fact that Residential status is the foremost requirement to be examined for each Previous Year while computing tax. Residential Status may vary Previous Year to Previous Year. Section 6 of Income Tax Act, 1961 deals with it. Recently major amendments have been inserted by Finance Act, 2020 in […]...

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Posted Under: Income Tax |

Residential status – Relevance for determining taxable income & tax liability

Have we ever thought as to why is determining Residential status given so much of importance? It is because only on the basis of the residential status is the taxable income and tax liability of an entity is calculated and arrived at. Further depending upon the various persons and entity the definition of Residential status […]...

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Posted Under: Income Tax |

Know Your Residential Status in India for Income Tax Purpose

1. This article has been discussed in detailed regarding the determination of Residential Status of an Individual in India as per the Income Tax Act,1961-2020. 2. For computing the taxable income of an Individual, it is important to determine the residential status of an individual in India as per the Income Tax Act,1961 for each [&hellip...

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Posted Under: Income Tax |

Residential Status & Scope of Income

RESIDENTIAL STATUS We already know, tax is charged on Total Income. The computation of this total income further depends upon the residential status. The followings are the importance of residential status; Importance of Residential Status: 1. Total Income of an assessee cannot be determined without knowing his residential Status. 2. Resi...

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Posted Under: Income Tax |

CBDT Clarification on Tax Residency – A Scope for New Interpretation

As per the OECD Convention Model, 2017 the term resident of a country means any person who, under his native country is liable to tax therein by reason of his domicile, residence or place of effective management. Due to COVID-19, if an individual is present in a jurisdiction for a considerable amount of time, it […]...

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Posted Under: Income Tax |

Resident Status – Resident & Resident but Not Ordinary Resident

Resident Status of a ‘Resident’, Resident but Not Ordinary Resident (RNOR) under the Income Tax Act, 1961 in light of Finance Act, 2020 In India the residential status of a person plays a vital role in determining the taxability of income of any person. The Income Tax Act, 1961 follows the residence-based taxation system wherein [&hel...

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Guide to Residential Status of Individual – Finance Act, 2020

A guide to amended provisions of Residential Status of an Individual as per the Finance Act, 2020 Taxability of an individual visiting/residing in India or going outside India has always been a matter of concern for the revenue authorities. Individual who is earning income in India as well as earning in other country generally faces [&hel...

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Posted Under: Income Tax |

Amendment to Section 6 (Residential Status) by Finance Act 2020

Amendments to Section 6 (Residential Status) by Finance Act, 2020 are basically divided in three parts: 1.Curtailment of benefit of Explanation 1, in clause (b) to certain Indian Citizen and PIOs (person of Indian origin) (182 Days to 120 Days) with more than 15 Lacs Indian Income, 2. Deemed Residency for Indian Citizen with more [&hellip...

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Posted Under: Income Tax |

Impact of Amendments in Residential Status Provisions by Finance Act 2020

Introduction Finance Act 2020, as passed in Lok Sabha, brought up some significant changes to the provisions of determining the residential status of an individual in India. Finance Minister Shree Nirmala Seetharaman tried to narrow down the means by which an individual avoids taxes in India by becoming a non-resident in India. These chan...

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Posted Under: Income Tax |

Covid 19 Impact on Residential Status Under Income Tax Act

Circular No. 11/2020 - income tax (08//0/5/20)

Covid 19 Impact on Residential Status Under the Income Tax Act, 1961 for the F.Y 2019-20 Background 1. Section 6 of the Income Tax Act 1961, deals with the determination of residential status of a person (i.e resident, Non-resident and Not ordinary resident). 2. The taxability of income of person who is stay outside India […]...

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Posted Under: Income Tax |

Residential Status of individual and it’s Tax Impact

In this article, we have discussed about how the residential status of an individual taxpayer can be determined for the Previous Year i.e 2019-2020 or Assessment Year 2020-2021....

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Posted Under: Income Tax |

Recent Changes & Issues in Income Tax & International Taxation

Article explains guidelines for Mutually Agreed Procedure (MAP), Changes in Tax Residency Rules, Changes in equalization levy, Amendments w.r.t. Dividend Distribution Tax (DDT), Applicability of S 269 SU to B2B Businesses, Deferment for Approval/ Registration of Charitable Trusts & Exempt Institutions, Reduction in TDS/TCS Rates, TDS ...

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Posted Under: Income Tax |

A Short Summary of New Provisions of Residential Status of An Individual

RESIDENTIAL STATUS OF AN INDIVIDUAL Resident Indian Citizen or person of Indian Origin – Stay in India for 182 days or more during the relevant year OR – Stay in India for 120 days or more during the relevant year and 365 days or more during the preceding four years – Total Income other than […]...

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Posted Under: Income Tax |

Income Tax & FEMA provisions applicable to Non Residents

In this part you can gain knowledge about various provisions of Income-tax Law and Foreign Exchange Management Act, 1999 (FEMA) which are useful to a non-resident. The first part deals with provisions of Income-tax Law and the second part deals with the provisions of FEMA....

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Posted Under: Income Tax | ,

Residential Status | Section 6(1A) | An unexpected twist in tale

Finance Act, 2020 has amended section 6 to insert new sub-clause (1A) with an intention to bring into tax net the persons who are not liable to pay tax in any country due to their domicile or residency or any other criteria of similar nature. The newly inserted clause reads as under: “(1A) Notwithstanding anything […]...

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Posted Under: Income Tax |

Number of days stay in India-Must know for NRIs

The Finance Bill 2020 has been passed by the Parliament with some major relaxations on March 23, 2020. At the stage of passing of the Bill, there have been amendments made which would directly impact the Non Resident Individual community w.e.f 01st April, 2020. The Article here explains the concept of Residential status, deemed Resident, ...

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Posted Under: Income Tax |

Residential Status – Unintended anomaly of section 6(1A)

The Finance Act, 2020 made several amendments in the provisions of the section 6 of the Income-tax Act, 1961 (Act) with aim to bring the stateless person (an individual who is citizen of India and having income other than foreign source more than Rs. 15 Lakhs) in tax net of the India....

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Posted Under: Income Tax |

Key takeaways on determination of residential status of an individual as per finance act, 2020

The author has made an attempt to discuss each amendment made under section 6 of the Act in a tabular format, so that it is easy for the readers to understand the difference between the provisions as per the erstwhile law, the provisions proposed by the Finance Bill, 2020 and the amended law as mentioned in Finance Act, 2020:...

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Posted Under: Income Tax |

Revised Residential Status Provisions | Section 6 | Income Tax Act 1961

Introduction With the recent amendment by Finance Act 2020 in residential status provisions, NRIs are looking for possible understanding. It is crucial to understand the same as taxability of any income in the hands of an individual depends on the below criteria:- – Residential Status of the individual as per the Income tax act and ...

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Posted Under: Income Tax |

Non-Resident Analysis and Taxation

1. The conditions to be called as an Indian RESIDENT or NON RESIDENT are: An individual is said to be resident in India in any previous year, if he— (a) is in India in that year for a period 182 days or more or Or, (b) Staying in India for 60 days in last financial […]...

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Posted Under: Income Tax |

Residential status under Income Tax for AY 2020-21

What is chargeable to tax is only Income. Naturally whatever qualifies as income under section 2(24) , shall be taxed as per the applicable tax rates under the income tax act. A key tangent to decide whether the income earned is taxable in India, is the residential status of the person who is receiving the […]...

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Posted Under: Income Tax |

COVID-19 PANDEMIC: Relaxation on Residential Status under Income Tax Act, 1961

In this article, I have covered the need and relaxations provided by the Central Government on Residential Status in Circular no. 11 dated May 8, 2020. As per the provisions of section 6 of the Income-tax Act, 1961 ‘period of stay’ of an individual is used to determine the residential status of individual taxpayers. Ordinarily, [&hell...

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Posted Under: Income Tax |

Lockdown period not to be counted in residential status determination

Recent clarification issued by CBDT – Lockdown time period will not be counted in the determination of residential status of NRIs for the FY 2019-20 Considering the impact of Covid 19 and amidst the situation of lockdown and suspension of international flights CBDT has recently issued Circular No 11 of 2020 dated 8 May 2020 [&hellip...

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Posted Under: Income Tax |

Recent changes in residential status as per Income Tax Act – All you wanted to know in a nutshell

There is a change in the provisions for determining residential status, as per the amendment in Income tax act. The general rule will remain as same i.e. any person who is in India for more than 182 days will be treated as resident in India. OR, if he was in India for 60 days or more […]...

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Posted Under: Income Tax |

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