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Clarification in respect of residency under section 6 of the Income-tax Act, 1961

Clarification in respect of residency under section 6 of the Income-tax Act, 1961

Section 6 of the Income-tax Act, 1961 (the Act) contains  provisions  relating to determination of residency of a person. 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.

2. Various representations have been received stating that there are 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 non­ resident or not ordinary resident in India. However, due to declaration of the lockdown and suspension of international flights owing to outbreak of Novel Corona Virus (COVID-19) , they are required to prolong their stay in Concerns have been expressed that this extra stay in India may make them a resident of India under section 6 of the Act.

3. In order to avoid genuine hardship in such cases, the Board ,  in  exercise of  powers conferred under section 119 of the Act, has decided that for the purpose of  determining  the residential status under section 6 of the Act during the previous year 2019-20 in respect of  an individual who has come to India on a visit before  22nd March, 2020 and:

(a) has been unable to leave India on or before 31st March , 2020, his period of stay in India from 22nd March , 2020 to 3151 March, 2020 shall not be taken into account; or

(b) has been quarantined in India on account of Novel Corona Virus (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; or

(c) has departed on an evacuation flight on or before 31st March , 2020, his period of stay in India from 22″‘ March, 2020 to his date of departure shall not be taken into account.

(Neha Sahay)
Under. Secretary (TPL)-I

Copy to the:

  1. PS/ OSD to FM/ PS/OSD to MoS(F).
  2. PS to the Finance
  3. Chairman and Members, CBDT
  4. Joint Secretaries/ CsIT/ Directors/ Deputy Secretaries/ Under Secretaries, CBDT
  5. C&AG of lndia (30 copies).
  6. JS & Legal Adviser, Ministry of Law & Justice New Delhi.
  7. CIT (M&TP). Official Spokesperson of CBDT
  8. Principal DGIT (Systems) for uploading on official website
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