Changes in provision determining Residential Status of any individual – Budget 2020


Changes in provision determining Residential Status of any individual:

A. Currently, An Indian citizen or Person of Indian Origin is considered to be resident of India if:

(i) He has been in India for an overall period of 365 days or more within 4 years preceeding that year; and

(ii) He is in India for overall period of 182 days or more in that year

This provision has been made more stringent now by reducing time period of 182 days to 120 days.

B. Currently, conditions to be satisfied for qualifying as ‘Not Ordinarily Resident’ are:

(i) He has been a Non-resident in India in 9 out of 10 previous years

(ii) He has been in India for 729 days or less in 7 previous years

This provision has been liberalized by abolishing above mentioned dual condition and now assesse needs to be a non- resident in India in 7 out of 10 previous years to qualify as Not Ordinarily Resident.

Changes in provision determining Residential Status of any individual - Budget 2020
Changes in provision determining Residential Status of any individual – Budget 2020

C. New provision has been inserted namely, an Indian citizen shall be deemed to be resident of India in any previous year, if he is not liable to tax in any other country due to reason of his domicile or residence or any other criteria of similar nature.

These provisions will largely impact the residential status of NRIs and accordingly taxability of global income will be decided.

Reach easeoftaxation team at [email protected] or 9899920870 for further clarification or consultancy. Share and like the page to allow us to benefit larger audience with regular updates.

Tags : Budget 2020, Income Tax


Join Study Cafe Whats App Group

This Account belongs to Admistrator of Studycafe.

0 Comments

Your email address will not be published. Required fields are marked *