The Chartered Accountant
The Chartered Accountant
The Chartered Accountant
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Residential Status<br />
DECEMBER 2008 984 THE CHARTERED ACCOUNTANT<br />
TAXATION<br />
TAxATioN of ExPATRiATES<br />
With the fast paced globalisation of the world trade and liberalisation of the<br />
Indian economy, the number of persons moving in or out of India in the<br />
exercise of their business, profession or employment is constantly on the<br />
increase. This article attempts to discuss various taxation concepts and issues<br />
related to these expatriates.<br />
As in most of the countries, the liability<br />
under the Indian income-tax law is also corelated<br />
to the residential status of the concerned<br />
tax payer. Section 6 of the Incometax<br />
Act, 1961 creates three categories as far<br />
as residential status is concerned.<br />
Resident:<br />
l An Individual is<br />
said to be resident<br />
in India in any previous<br />
year if he is<br />
in India for at least<br />
182 days in that<br />
year or during that<br />
year he is in India<br />
— CA. S.P. Santhanam<br />
(<strong>The</strong> author is a member of the<br />
Institute. He can be reached at<br />
spsanthanam_ca @yahoo.co.in)<br />
for a period of at least 60 days and<br />
has been in India for at least 365 days<br />
during the four years preceding that<br />
year.<br />
l However, the period of 60 days referred<br />
to above is increased to 182<br />
days in case of Indian citizens who<br />
leave India as members of the<br />
crew of an Indian Ship for Indian<br />
citizens or persons of Indian<br />
origin who, being outside<br />
India, come to visit India in any<br />
previous year.<br />
Relevant Case:<br />
[2006] 155 Taxman 326 (AAR<br />
- New Delhi)
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