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Query on residential status

Whizkid (student) (640 Points)

08 March 2010

If an assessee is born in INDIA, but both his parents and grandparents are born abroad say UK or elsewhere,...Will the assessee be considered as INDIAN ORIGIN for purpose of residential status...!?

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10 Replies

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 08 March 2010

Hi DIVYA.., sorry for earlier post, it will be considered as INDIAN ORIGIN...

AND THANKS MR. Ordinarily resident Evil

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Raj Saxena (1412th Tiger) (Struggling Student) (272 Points)
Replied 08 March 2010

In my thot Dhiraj is rite.

Max Payne (employed) (2574 Points)
Replied 08 March 2010

But Dhiraj Bhai,

The Income Tax Act says

in explanation (b) to section 6(1),

that PIO means a person who is covered in explanation to clause (e) of sec 115WC, and that brings us to;

Explanation.-A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India

https://www.incometaxindia.gov.in/acts/income%20tax%20act/115c.asp

This provision i think can be applied literally without making references to FEMA for definition of PIO.. cos its a tax statute, and the person is of indian origin....

1 Like

Shashank Goel (Senior Audit Executive) (78 Points)
Replied 08 March 2010

hey divya

In simple words if the assesee's grandparents / parents was born in undivided** india then the assesee would be of indian origin

** born before 1947 (undivided india)

ejaz naiyer (C.A. FINAL) (293 Points)
Replied 08 March 2010

In the given case the assessee shall not be considered as indian origin.

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CA.M.V.RAMACHANDRA RAO (CHARTERED ACCOUNTANT) (188 Points)
Replied 08 March 2010

Hi Divya,

He is not a Indian origin as neither of his parents nor the assessee born in undivided India( before 1947).

One person can be considered as Indiasn origin any of the three generations( assesee, his parents, grand parents) should born in Undivided india ( before 1947).

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 08 March 2010

Originally posted by : Divya
	If an assessee is born in INDIA, but both his parents and grandparents are born abroad say UK or elsewhere,...Will the assessee be considered as INDIAN ORIGIN for purpose of residential status...!?

No ! he/she is not a PERSON OF INDIAN ORIGIN for the purpose of Section 115C(e) of Income Tax Act, 1961 because of the explanation.

Explanation to Section 115C(e) - A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India

Bala (Student) (498 Points)
Replied 08 March 2010

friends please refer to this

"Notification no.FEMA 21/2000-RB dated May 3,2000 viz. Foriegn Exchange Managment ( Acquistion and TRansfer of Immovable property in India), Regulations, 2000." According to the above ntofication ' a person of Indian origin' means an individual (not being a citizen of Pakistan or Bangladesh or Afghanistan or China or Iran or Nepal or Bhutan) who (i) at any time, held an Indian passport or (ii) who or either of whose father or whose grandfather was a citizen of India by virtue of constitution of India or the Citizenship Act,1955

manish (Article Assitant) (358 Points)
Replied 08 March 2010

If a person is deemed to be of indian origin if he or any of his parents or grand- parents were born in Undivided india.

Satvir Singh (Newly minted CA) (1733 Points)
Replied 09 March 2010

Originally posted by : Adarsh
	Originally posted by : Divya If an assessee is born in INDIA, but both his parents and grandparents are born abroad say UK or elsewhere,...Will the assessee be considered as INDIAN ORIGIN for purpose of residential status...!? No ! he/she is not a PERSON OF INDIAN ORIGIN for the purpose of Section 115C(e) of Income Tax Act, 1961 because of the explanation. Explanation to Section 115C(e) - A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India

Isn't there any definition regarding undivided India. To me, it looks like whole of Modern India, and includes Bangladesh & Pakistan before partition.