Recent Developments Amendments by Taxation And Other Laws (Relaxation And Amendment of Certain Provisions) Act, 2020 In the Provisions Relating to Residential Status

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The Tax Publishers Income Tax--Recent Developments Amendments by Taxation And Other Laws (Relaxation And Amendment of Certain Provisions) Act, 2020 In the Provisions Relating to Residential Status CA. Manoj Gupta The Finance Act, 2020 has amended Section 6 of the Income Tax Act. There were certain anomalies in these amendments. The Taxation And Other Laws (Relaxation And Amendment of Certain Provisions) Act, 2020 has done away with these anomalies. The learned author explains these amendments. 1. Rules of Residence for Citizen of India or Person of Indian Origin Clause (1) of Section 6 of the Act provide for situations in which an individual shall be resident in India in a previous year. Currently, 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 or periods amounting in all to one hundred and eighty-two days or more; or (b) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days [This period is 182 days or more for an Indian citizen or a person of Indian origin, who being outside India, comes on a visit to India] or more in that year. Clause (b) of Explanation 1 to Section 6(1) provides that an Indian citizen or a person of Indian origin, who being outside India, comes on a visit to India, shall be Indian resident if he is in India for 182 days instead of 60 days in that year. This provision provides relaxation to an Indian citizen or a person of Indian origin allowing them to visit India for longer duration without becoming resident of India. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Recent Developments

Amendments by Taxation And Other Laws (Relaxation And Amendment of Certain Provisions) Act, 2020 In the Provisions Relating to Residential Status

CA. Manoj Gupta

The Finance Act, 2020 has amended Section 6 of the Income Tax Act. There were certain anomalies in these amendments. The Taxation And Other Laws (Relaxation And Amendment of Certain Provisions) Act, 2020 has done away with these anomalies. The learned author explains these amendments.

1. Rules of Residence for Citizen of India or Person of Indian Origin

Clause (1) of Section 6 of the Act provide for situations in which an individual shall be resident in India in a previous year. Currently, 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 or periods amounting in all to one hundred and eighty-two days or more; or

(b) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days [This period is 182 days or more for an Indian citizen or a person of Indian origin, who being outside India, comes on a visit to India] or more in that year.

Clause (b) of Explanation 1 to Section 6(1) provides that an Indian citizen or a person of Indian origin, who being outside India, comes on a visit to India, shall be Indian resident if he is in India for 182 days instead of 60 days in that year. This provision provides relaxation to an Indian citizen or a person of Indian origin allowing them to visit India for longer duration without becoming resident of India.