CBDT Clarifies residential status u/s 6 of Income tax for NRI’s stuck in India due to COVID19 outbreak

Relief to residency status in Income Tax to NRI Foreign visitors due to lockdown in India

Govt gives relief on residency status to NRIs/foreign visitors whose stay in India got prolonged due to lockdown.Prolonged stay in India to be discounted.CBDT issues Circular no.11 dated 8th May,2020 clarifying residential status u/s 6 of Income Tax Act wrt FY2019-20

Further, Circular for determining the residential status in such cases for Financial Year 2020-21 would be issued in due course, depending upon normalisation of/ resumption of international flights.

For FY 2020-21 the circular will be issued later, depending upon flights resumption.

This clarification will help many NRI to avoid forced residential status due to Covid-19 lockdown in India

Those who wanted compulsory quarantined because of Coronavirus, the period from 1 March 2020 to 31 March 2020 will not be taken in account while calculating number of days stayed in India. Similarly those who are not able to fly after 22 March 2020, because of lockdown in India should not include days from 22 March 2020 to 31 March 2020 while calculating residential status in India

The above circular will help thousands of Non Resident Indian and also Foreign Nationals of USA, Canada, Australia, Japan, etc who would have become resident if the releif was not privided

The Twitter handle of CBDT made following announcement on 8th May

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