Residential Status

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Keerthilakshmi B R (Querist)
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25 May 2009 If a person has gone on Deputation from India to abroad, will he be able for 182 days criteria or 60 days criteria?

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taxindiaconnect

taxindiaconnect (Expert)
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25 May 2009 The explanation (a) to section 6 (c) of Income Tax Act 1961 Deals with the situation in your question. The explanation is reproduced hrerunder
Explanation.—In the case of an individual,—
(a) being a citizen of India, who leaves India in any previous year 45[as a member of the crew of an 46Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or] for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and eighty-two days” had been substituted ;
Thus if a citizen of India who leaves India for taking up an employment outside India, in his case the time limit of 182 days is inserted in place of 60 days in sub section (c ) of section 6 of IT Act. The impact of this is that the assessee with 365 days in last four assessment is will have to be in India for 182 days in India to become a resident, thus giving an exemption to from taxation here in India for the income earned outside India.

Keerthilakshmi B R

Keerthilakshmi B R (Querist)
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25 May 2009 Does the phrase, "For the purpose of Employment outside India" as stated in Explanation to Section 6 includes Deputation outside India also?

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