annamalai (Partner) (97 Points)
08 June 2012DEARS
A PERSON EMPLOYED BY foreign company is posted in ship , receives payment in NRE A/c ( foreign currency) but is visa is not stamped though he had been not in India for more than 180 days,
kindly clarify the status .
with advance thanks.
annamalai.K
shankar
(CA, CS Final)
(243 Points)
Replied 08 June 2012
Dear annamalai
Tax incidence on an assessee depends on his residential status. For instance, whether an income, accrued to a person outside India, is taxable in India depends upon the residential status of the person in India. Similarly, whether an income earned by a foreign national in India (or outside India) is taxable in India depends on the residential status of the individual, rather than on his citizenship. Therefore, the determination of the residential status of a person is very significant in order to find out his tax liability.
So as per the provision of section 6 of income tax act 1961 - An individual is said to be resident in India in any previous year, if he - (a) is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or (b) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.
So in your case - first condtion of section 6 is not satisfied so we have to see whether second condtion of section 6 will be apply or not.
then after we findout his/her residential status.
CAclubindia
