How different is the Residential Status under FEMA and Income Tax Act?
The question over how the residential status of an individual does determine his or her tax liability makes discussions and impacts of fund transactions around every individual who every time enters or leave India.
Criteria to a resident of India: (Via Recent Legislations)
- A person can either be a resident or a non-resident of India. They are treated as residents if they fulfil any one of the two conditions.
- As per the IT laws: They were in India for 182 days or more during the relevant financial year or; were in India for 60 days or more in the four preceding FYs.
- As per the Finance Act, 2020: Those with an annual income above Rs.15 Lakh, the period of staying in the country has been reduced to 120 Days or more.