New Delhi (NVI): The lockdown period will not be counted to determine the residency status of NRIs, the Central Board of Direct Taxes (CBDT) said today.
Since the lockdown was announced in India and flight operations were suspended, NRIs who came to the country before the lockdown, do not have an option to return till travel restrictions are lifted.
However, the number of days they stay in India decides their liability of income-tax compliance, stated in recent amendments introduced by the Finance Act 2020 related to the tax residency rules can be a concern for some NRIs, CBDT in a statement said.
In order to mitigate the hardships of these individuals, the CBDT has issued the order under section 119 of the Act with this Circular, it added.
It said various representations have been received stating that there are a number of individuals who had come on a visit to India during the previous year 2019-20 for a particular duration and intended to leave India before the end of the previous year for maintaining their status as a non-resident.
In respect of an individual who has come to India on a visit before 22nd March, 2020, the circular stated the following:
a. Has been unable to leave India on or before 31st March 2020, his period of stay in India from 22nd March, 2020 to 31st March, 2020 shall not be taken into account;
b. Has been quarantined in India on account of novel coronavirus (Covid-19) on or after 1st March, 2020 and has departed on an evacuation flight on or before 31st March, 2020 or has been unable to leave India on or before 31st March, 2020, his period of stay from the beginning of his quarantine to his date of departure or 31st March, 2020, as the case may be, shall not be taken into account;
c. Has departed on an evacuation flight on or before 31st March, 2020, his period of stay in India from 22nd March, 2020 to his date of departure shall not be taken into account.
