Question ID : 40856

Income tax matters

An assesse has gone abroad and was not here in india since 1-4-20 and is not going to be here for 182 days in India during 2020-21 financial year.A business under his proprietorship is running in India. What will be taxability position during 2020-21. He is having some income abroad also

Answer ID : 80764

section 6 of the Income-tax Act, an individual is said to be non-resident in India if he is not a resident in India and an individual is deemed to be resident in India in any previous year if he satisfies any of the following conditions: 1. If he is in India for a period of 182 days or more during the previous year; or 2. If he is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year. However, in respect of an Indian citizen and a person of Indian origin who visits India during the year, the period of 60 days as mentioned in (2) above shall be substituted with 182 days. The similar concession is provided to the Indian citizen who leaves India in any previous year as a crew member or for the purpose of employment outside India. However if he goes out of India for employment, he will be considered NRI else 60 days of stay in India will apply

Answer ID : 80770

The business income earned in India will be taxable in India as the income is derived and earned in India. Hence, the tax is to be paid in India for FY 2020-21.

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