New Delhi, May 9: The Finance Ministry on Friday announced relief to those who have been facing difficulty with their residency status in India under section 6 of the Income-tax Act due to lockdown and suspension of international flights owing to COIVD-19 outbreak, as they have had to prolong their stay in India.
According to a Central Board of Direct Taxes (CBDT) release, Finance Minister Nirmala Sitharaman today allowed discounting of prolonged stay period in India for the purpose of determining residency status after considering various representations received from people who had to prolong their stay in India due to lockdown and suspension of international flights.
They expressed concern that they will be required to file tax returns as Indian residents and not as NRIs after 120 days of stay.
The Finance Ministry stated that the lockdown continues during the financial year 2020-21 and it is not yet clear when international flight operations would resume, a circular excluding the period of stay of these individuals up to the date of resumption of international flight operations shall be issued for determination of the residential status for the financial year 2020-21.
A circular also said that in order to avoid genuine hardship in such cases, the CBDT has decided that for the purposes 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 March 22, 2020 and:
(a) has been unable to leave India on or before March 31, 2020, his period of stay in India from March 22, 2020 to March 31, 2020 shall not be taken into account; or
(b) has been quarantined in India on account of novel coronavirus (Covid-19) on or after March 1, 2020 and has departed on an evacuation flight on or before March 31, 2020 or has been unable to leave India on or before March 31, 2020, his period of stay from the beginning of his quarantine to his date of departure or March 31, 2020, as the case may be, shall not be taken into account; or
(c) has departed on an evacuation flight on or before March 31, 2020, his period of stay in India from March 22, 2020 to his date of departure shall not be taken into account."
The release said 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 COVID-19, they are required to prolong their stay in India. The status of an individual 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 year," it said.
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After all these sufferings,it pains a section of us,common peole still support demonetisation !
What was supposed to be a surgical strike against tax cheats and counterfeit currency became an attack on a large informal economy that ran almost entirely on cash. The hardships caused by a shortage of new legal tender, and the rush to deposit old 500 and 1,000 rupee ($15.40) notes in bank accounts before the Dec. 31 deadline, took a heavy toll. More than 100 people died in bank and ATM queues, although it's impossible to confirm if the deaths from heart failure or exhaustion were directly a result of demonetization.
I Will donate one rope to hang him.
@Truth Teller - I share your views 100%
Honestly, i am not sure what is there to like about Congress! Besides all the scams running to several thousand crores and losing face in the international scene (thanks to Kalmadi) they have played religion & caste politics for decades for vote bank ruining the country. For the first time after independence perhaps there is some move towards honesty, improving infrastructure, education and cleanliness. Why some continue to hate Modi is just beyond me if you truly love this country. Rahul is bad news for India unless they find someone else who can be like Modi - hardworking & with a vision to change.
Honesty is incompatible with the amassing of a large fortune - Mahatma Gandhi
Modiji is the true and honest man after Gandhi
Demonetization in India was a war against dishonesty and it is a movement against corruption.This exercise has brought an awareness to the people not to make wealth dishonestly.Majority of the people wanted honest system in India and supported the Government's initiative on demonetization.
I am a hardworking sincere person. I earn for a living and to support my family, because of demonetization me and my family suffered without any cause. This man freezes our transactions to a minimum of 2000 and what not. Who was he to do it, By law it is not permissible unless a person is held guilty by law agencies.
Because of one man 100 innocent died standing in queue. How come once company made 160000 times profit during demonetization, Where is the black money, what happened to panama papers. These statistics have to shown after demonetization. Even now they are misleading crores of people with data not important to Aam Admi.
Dinesh Gundu will soon be under police custody
Nobel prize winner praised Modi for demonetisation and digital India and later he confessed he told wrong after knowing that Modi banned old 100&500 notes and implemented 2000 rupees notes..
I can say Modi is the best intelligent person in the world. And he should get business man of the year award.
Because,
1. Modi made huge benefit to Paytm (paytm ceo didnt do this much profit for his company)
2. Modi made profit to the private agency which made/maintaning aadhar things.
3. Modi made profit to Jio
4. Modi made profit to big companies by implementing demonetisation and GST (same time it affected badly on small scale retailer shop)
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