Clarification in respect of residency under section 6 of Income Tax Act, 1961
- Section 6 contains provisions relating to the determination of the residency of a person.
- The residential status of an Individual depends upon the number of days stayed in India.
- Due to the declaration of the lockdown and suspension of international flights, many individuals are required to prolong their stay in India.
- There was a concern that this extra stay in India may make them a resident of India.
In order to avoid genuine hardship in such cases, the CBDT clarified vide Circular no 11/2020 dated 8th May 2020, that for the purpose of determining the residential status under section 6 of the Income Tax Act during the previous year 2019-20 in respect of an individual who has come to India on a visit before 22nd March 2020 and
- has been unable to leave India on or before 31st March 2020, his period of stay in India from 22nd March 2020 to 31st March 2020 shall not be taken into account; or
- has been quarantined in India on account of COVID-19 on or after 1st March, 2020 and has departed on an evacuation flight on or before 31st March 2020 or has been unable to leave India on or before 31st March 2020, his period of stay from the beginning of his quarantine to his date of departure or 31st March, 2020, as the case may be shall not be taken into account; or
- has departed on an evacuation flight on or before 31st March, 2020, his period of stay in India from 22nd March, 2020 to his date of departure shall not be taken into account.
!! I hope it was helpful !!
!! Thank You !!
Join Us for regular updates:
Join Us for regular updates:
On Whatsapp: Type "Updates" and send on Whatsapp Chat
For further information contact at info@commerceinsiders.com
!! Thank You !!
[Disclaimer:-This
article is being furnished for informational purposes only. We make
every effort to use reliable & comprehensive information, but we do
not represent that the contents of the article are accurate or
complete.]
