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TAX
PLANNING TIPS FOR
RESIDENTIAL STATUS :
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The following practical tips can be borne in mind to avail benefits of tax
planning in the context of residential status:
An individual planning to go abroad for employment during a
financial year should attempt to do so if possible by 28th
September of the financial year, so that his stay in India during that
year is restricted to less than 182 days and he qualifies for the
status of a Non-Resident.This would ensure that the income earned
by him outside India during the remaining part of the financial year
does not attract liability to Indians Income Tax.
An individual who is abroad and comes on a visit to India can plan
his stay in India up to 181 days during the financial year and still
maintain his status as a 'Non-Resident'.
In case an individual coming from abroad on a visit desires to stayin India for a continuous stretch up to 362 days without disturbing
his Non-Resident status, the same can be done by overlapping the stay in two financial years in a manner that in each year he stays in
India for a period not exceeding 181 days.Thus, he can plan a continuous stay from the first week of October of one year to the
last week of September of the other year, without losing his
non-resident status.
Having remained a Non-Resident for at least two years in
succession, even if the individual becomes a Resident in the third
year. |
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