Resident status when employed outside India, and definition of employment

Oshan (3 Points)

21 July 2023  

Hi,

I need help understanding resident status for a friend. Explaining below with example.

  1. Kirti is an Indian citizen working with Deloitte for the past 3 years.
  2. She got employed with Booking.com (Amsterdam) on 10 May 2021 and travelled to Amsterdam on the same day.
  3. She returned to India twice during the FY 2021-22, and stayed a total of 95 days in India in the FY 2021-22.
  4. In FY 2022-23, Kirti continued working with  Booking.com in Amsterdam and visited her family in India for a total of 75 days.

I would like to understand the following -

  1. What would be Kirti's residency for the purpose of Income tax filing in AY 2022-23?
  2. What would be Kirti's residency for the purpose of Income tax filing in AY 2023-24?
  3. I understand that a person traveling outside India for the purpose of employment, if stays in India for less than 182 days, is considered NRI. What is the definition of employment here.
    1. Does it mean that they need to be working in an indian company and sent abroad for a project concerning the company
    2. Would employment in an international company be considered for this exemption as well?
    3. Would employment be considered if they travel for their own business?
    4. (update- additional questions) Kirti has paid tax on her income in Amsterdam. Is she expected to pay tax on this income in India as well?

Thanks..!!