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Tax4india ›› Income Tax ›› Non-resident Under Income Tax Act
Non-resident under Income Tax Act
Non-resident - definition:
There has been confusion and consequent litigation regarding the status of 'Not Ordinarily Resident'. This has now been clarified to mean the following:
- A person, who has been non-resident in India in 9 out of the 10 preceding previous years.
- a person, who has been in India for less than 730 days in the 7 years, preceding the year in question.
In the past, if a person was non-resident for 2 years, he could stay in India for as many as 9 years and be treated as 'Resident' but 'Not Ordinarily Resident' for those 9 years. Now, this has been reversed. Only a person, who has been non-resident for 9 years, will be entitled to the facility of 'Resident'. He will be granted the status of Not 'Ordinarily Resident' only after 2 years
Similarly, a resident Hindu Undivided Family is treated as 'not ordinarily resident' in India, if the manager of the family satisfies either of the above two conditions. To further clarify the issue, a resident individual will be 'ordinarily resident' in India if he satisfies the following two additional conditions:
As on March 31, 2003- i.e. for the assessment year 2003-04:
- He has been resident in India for at least 9 out of the 10 previous years, immediately preceding the relevant previous years.
- He has been in India for a period of 730 days or more during the 7 years, immediately preceding the relevant previous year.
From April 01, 2003- i.e. for the assessment year 2004-05 onwards:
- He has been resident in India for at least 2 out of the 10 previous years, immediately preceding the relevant previous year.
- He has been in India for a period of 730 days or more during the 7 years, immediately preceding the relevant previous year.
The tax laws that affect NRIs and their investments, business and income in India.
Income Which Is Exempt From Tax For The NRIs.
Tax Deduction At Source For NRIs.
Capital Gain Tax For NRIs.
Wealth Tax For NRIs.
Gift Tax For NRIs.
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