Residential status of an individual (OCI)
This query is : Resolved
28 March 2020
Hello,
I am preparing income tax return of an OCI (Overseas Citizen of India) for the F.y. 2018-19.
His visit to India for the F.y. 2018-19 is 183 days.
What will be his residential status for F.y. 2018-19, Kindly help
I am preparing income tax return of an OCI (Overseas Citizen of India) for the F.y. 2018-19.
His visit to India for the F.y. 2018-19 is 183 days.
What will be his residential status for F.y. 2018-19, Kindly help
29 March 2020
A taxpayer would qualify as a resident of India if he satisfies one of the following 2 conditions :
1. Stay in India for a year is 182 days or more or
2. Stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year
In the event an individual leaves India for employment during an FY, he will qualify as a resident of India only if he stays in India for 182 days or more. This otherwise means, condition (b) above of 60 days would not apply to him.
Since OCI was in India for 183 days, OCI is resident Indian.
Now you will have to check whether OCI is an ordinary resident (ROR) or Resident but Not Ordinary resident (RONR) based on following conditions.
1) Has been a resident of India in at least 2 out of 10 years immediately previous years and
2) Has stayed in India for at least 730 days in 7 immediately preceding years.
If he both the conditions are fulffiled, then OCI is ROR, otherwise the OCI is RNOR.
1. Stay in India for a year is 182 days or more or
2. Stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year
In the event an individual leaves India for employment during an FY, he will qualify as a resident of India only if he stays in India for 182 days or more. This otherwise means, condition (b) above of 60 days would not apply to him.
Since OCI was in India for 183 days, OCI is resident Indian.
Now you will have to check whether OCI is an ordinary resident (ROR) or Resident but Not Ordinary resident (RONR) based on following conditions.
1) Has been a resident of India in at least 2 out of 10 years immediately previous years and
2) Has stayed in India for at least 730 days in 7 immediately preceding years.
If he both the conditions are fulffiled, then OCI is ROR, otherwise the OCI is RNOR.
29 March 2020
Thank you sir,
to calculate resident on india in at least 2 out of 10 years, which conditions i have to check for all 10 preceeding years.
to calculate resident on india in at least 2 out of 10 years, which conditions i have to check for all 10 preceeding years.
29 March 2020
Just check previous ITR filled by the OCI and its residential status in those years mentioned as per ITR.
29 March 2020
ASSESSE HAVE FILED RETURN FROM A.Y. 2013-14 AND ALL ARE MENTIONED AS NON RESIDENT STATUS. THEREFOR FOR MY CURRENT YEAR RESIDENTIAL STATUS WILL BE RNOR, CORRECT?
29 March 2020
If you dont have any information older than this, you can consider OCI as RNOR.
29 March 2020
Additional data i have is, As per his oci passport data his stay in india for last two preceeding financial year is
F.y. 17-18: 186 days (but status as per ITR - NRI) and f.y. 2016-17 113 days, his total stay in India for preceeding 4 financial year is 591 days.
F.y. 17-18: 186 days (but status as per ITR - NRI) and f.y. 2016-17 113 days, his total stay in India for preceeding 4 financial year is 591 days.
30 March 2020
Ok. But you need total data for atleast 7 years.
01 April 2020
Thank you sir, your advice is very much usefull for me
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