22 June 2011
A question from FEMA 1999- A person was a residence in India for whole of the financial year 1999-2000. As on 01.04.2000, the same person goes out of india for taking employment there...what will be the his residentail status for 2000-2001 ? According to me it should be Resident in India for 2000-2001, bcoz we have to consider the previous year i.e. 1999-2000 during which he was resident in India. Had he been left India on or before 31.03.2000, then he would be resident outside india for 2000-2001 ... plz tell me the asnwer ?
22 June 2011
there are two interpreations here - 1. theoretical as it is clearly written that if in PY individual is residing for more than 180 days then he is resident then, the answer should be Resident in india only but the second interpretation i came to know when i was attending the 6 week residential training in hyderabad...there the faculty said -
2. practical interpretation as the clause below specifically excludes the circumstances of employment the main clause does not apply , so if in current year individual has gone for employement then the previous year provision does not apply and he is PROI.
so, i think you have to follow the theortical approach only as u want marks only.......
CAclubindia
