CBDT relaxes residency rule for NRIs, concerns over filing tax returns quelled

As per the Income Tax Act, foreign residents in India are liable for tax based on their global income.

Published: 09th May 2020 08:53 AM  |   Last Updated: 09th May 2020 08:53 AM   |  A+A-

Income Tax Office

Income Tax Office (Photo | Debdutta Mitra, EPS)

By Express News Service

NEW DELHI: The Central government has relaxed residency norms for Non-Resident Indians (NRI) and foreign visitors forced to stay back in India due to the lockdown and ban on international air travel. As per the Income Tax Act, foreign residents in India are liable for tax based on their global income.

"Considering various representations received from people who had to prolong their stay in India due to lockdown and suspension of international flights, expressing concerns that they will be required to file tax returns as Indian residents, the finance minister allowed discounting of prolonged stay period in India for the purpose of determining residency status," the Central Board of Direct Taxes said.

The government said it will issue a circular excluding their period of stay up to the date of normalisation of international flight operations, for determination of the residential status for FY21, after the flights resumed.


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