The status of an individual, as to whether he is resident in India or a non-resident or not ordinarily resident, is dependent, inter-alia, on the period for which the person is in India during a previous year or years preceding the previous year.
Section 6 of the Income tax Act, 1961 (the Act) contains provisions relating to determination of residency of a person.
Due to declaration of the lockdown and suspension of international flights owing to outbreak of Novel Coronavirus (COVID-19), they are required to prolong their stay in India. Concerns have been expressed that this extra stay in India may make them a resident of India under section 6 of the Act.
What will be the residential status of individuals who had come on a visit to India during the previous year 2019-20 for a particular duration and intended to leave India before the end of the previous year for maintaining their status as non resident or not ordinary resident in India. ?
The Board, in exercise of powers conferred under section 119 of the Act vide Circular No. 11/2020 Dated 8th May, 2020 , has decided that for the purpose of determining residential status under section 6 of the Act during the previous year 2019-20 ; following mentioned period of stay in India shall not be taken into account
Readers may please notes these relaxations are provided for previous year 2019-20 only.
| In respect of an individual who has come to India on a visit before 22nd March, 2020 and | Period of stay in India shall not be taken into account for period |
| has not been able to leave India on or before 31 March, 2020 | From 22nd March, 2020 to 31st March, 2020 |
| has been quarantined in India on account of Novel Corona Virus (Covid-19) on or after 1st March, 2020 and
· has departed on an evacuation flight on or before 31 March, 2020 or · has been unable to leave India on or before 31st March, 2020 |
beginning of his quarantine to his date of departure or 31st March 2020 as the case may be |
| has departed on an evacuation flight on or before 31st March, 2020 | From 22nd March 2020 to his date of departure |
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Mr. Setia is a CA by Profession and expert in the field of Indirect Taxation Based in Delhi. Rich experience of over 5 year.