Clarifications On The Tax Relaxations In Respect Of Residency Owing To Covid-19
Jayesh Kariya, Partner – Corporate and International Tax, Infrastructure, Government and Healthcare
As you may be aware that in terms of the provisions of the Indian Income-tax Act, 1961, the status of an individual, as to whether he is resident in India or a non-resident or not ordinarily resident, is dependent, inter-alia, on the period for which the person is in India during a previous year or years preceding the previous year.
Relaxation for Financial Year 2019-20 on account of Covid-19:
Due to Covid-19 outbreak and to avoid genuine hardship, the Central Board of Direct Taxes (CBDT) has issued Circular (No. 11/2020, dated 8 May 2020) to relax certain conditions for determination of the residential status under Section 6 for previous year 2019-20. In respect of an individual who has come to India on a visit before 22 March 2020 and:
Relaxation for Financial Year 2020-21: may be issued in the future
Subsequently, the CBDT has issued the attached press release to clarify that as the lockdown continues during the Financial Year 2020-21 and it is not yet clear as to when international flight operations would resume, a circular excluding the period of stay of individuals up to the date of normalisation of international flight operations, for determination of the residential status for Financial Year 2020-21 shall be issued after the said normalisation.
Tags : EXPERT ZONE Infrastructure Jayesh Kariya India Government healthcare COVID-19 outbreak Tax Relaxations International Tax Financial Year 2019-20 Indian Income-tax Act CBDT