I want to know what effect covid related restrictions will have on Tax residency. Kindly consider the scenario,
A person is leaving India for permanent settlement abroad for the first time this year. Per Section 6, Clause 1C, of Income Tax rules related to residency, the person will be resident of India for tax purposes as no outgoing flights are available until June this year. which would mean he/she has to stay >60 days in India and due to which all income (incl. global) will be taxed.
Where the stay in India is extended beyond one's control and due to restrictions imposed by the government; What are the implications for the person in consideration. can he/she request to be considered as NRI and ask for exclusion of days during which travel was restricted?
Kindly also refer to this particular case decided by Delhi Court https://assets.kpmg/content/dam/kpmg/pdf/2015/06/Suresh-Nanda-1.pdf
Thanks.
CAclubindia
