Clarification in respect of residency under section 6 of the Income tax Act, 1961 due to Covid-19 lockdown

Section 6 of the Income-tax Act, 1961 (the Act) contains provisions relating to the determination of the 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 alla, on the period for which the person is in India during a previous year or years preceding the previous year.

Due to the declaration of the lockdown and suspension of international flights owing to the outbreak of Novel Coronavirus (COVID-19), they are required to prolong their stay in India. Concerns have been expressed that this extra stay in India may make them a resident of India under section 6 of the Act.

Clarification in respect of residency under section 6

Due to this Central Board of Direct Tax, in the exercise of powers conferred under section 119 of the Act, has clarified the determining of 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

  • has been unable to leave India on or before 31 March, 2020, his period of stay in India from 22 March, 2020 to 31 March, 2020 shall not be taken into account:or
  • has been quarantined in India on account of Novel Corona Virus (Covid-19) on or after 1 March, 2020 and has departed on an evacuation flight on or before 31 March, 2020 or has been unable to leave India on or before 31 March, 2020, his period of stay from the beginning of his quarantine to his date of departure or 31 March, 2020. as the case may be. shall not be taken into account,or
  • has departed on an evacuation flight on or before 31 March, 2020, his period of stay in India from 22 March, 2020 to his date of departure shall not be taken into account

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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