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Residential Status

saravanan (Trainee auditor) (31 Points)

23 July 2020

My friend left india on 2nd june 2019 to germany for doing his Phd and he receives some salary there...
Now the question is
whether he is Resident or Non resident
And whether the salary is taxable or not

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8 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14868 Points)
Replied 23 July 2020

1) He is resident Indian for the Income Tax purpose because he stayed in India 182 days ( form 1/1/2019 to 1/6/2019)

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Ramya Bhat (254 Points)
Replied 23 July 2020

To be a resident these conditions must be satisfied.

1...His stay in India must be 182 days or more in FY.
2..In the preceding 4 Py he must be stayed for more than 360 days and in the relevent FY his stay must be 60days...

if he is going for the employment purpose then he must be in India for 182 days...
but however for the FY 20-21 the period reduced to 120 days or more if his total income exceeds (other than foreign sources)15 lakh

Md Sohail (student) (28 Points)
Replied 24 July 2020

A taxpayer would qualify as a resident of India if he satisfies one of the following 2 conditions :

1. Stay in India for a year is 182 days or more or

2. Stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year

In the event an individual who is a citizen of India leaves India for employment during an FY, he will qualify as a resident of India only if he stays in India for 182 days or more.

So her stay in India for FY 2019-20 is 62 days ( 1 April to 2 June) and more than 365 days during previous 4 years. She satisfies the one of the condition above. She is resident for FY 2019-20 and so her income earned both in India and Germany would be taxable.