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Fema

Mansi bajaj (Student CA Final ) (32 Points)

06 October 2016

I have a query regarding the definition of “person Resident in India” under FEMA. If a person who is not in India in FY 2014-15 comes to India in F.Y 2015-16 for the purpose of employment, then whether such person shall be considered as person resident in India or not. It is hereby clarified that the person had not stayed in India during the preceding Year i.e 2014-15. In this regard I want to clarify whether the condition of 182 days is the basic condition to be checked irrespective of the reason that the person has come to India to take up employment. Awaiting your reply

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2 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 06 October 2016

As I understand, unless an individual resides in India for >182 days in the preceding FY, he cannot be termed as a person resident in India. So I think the basic condition is to check whether the person is resident in India for >182 days in the preceding FY.

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Vaishnavi Ganesh (Chartered Accountant) (861 Points)
Replied 11 October 2016

As per my understanding, it is that one person should reside in preceding financial year for more than 182 days in India so as to conder him as Resident in India. In the scenario refered by you, the person will be,

1. Resident outside India for the FY 2015-16 - Being resided in India for less than 182 days in FY 2014-15

2. Resident In India for the FY 2016-17 - as he has come to India for the purpose of taking up employement

Incase, the person has recided for more than 182 days in India, and left India for employment outside India, then he shall be considered as Resident outside India.