CIRCULAR NO.11

CIRCULAR NO.11

Circular .11 of 2020

F. No. 370142/18/2020-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, May 8, 2020

Clarification in respect of residency under section 6 of the Income-tax Act, 1961
Section 6 of the Income-tax Act, 1961 (the Act) contains provisions relating to
determination of residency of a person. The status of an individual, as to whether he is resident in
India or a non-resident or not ordinarily resident, is dependent, inter-alia, on the period for
which the person is in India during a previous year or years preceding the previous year.

  1. Various representations have been received stating that there are number of individuals
    who had come on a visit to India during the previous year 2019-20 for a particular duration and
    intended to leave India before the end of the previous year for maintaining their status as nonresident
    or not ordinary resident in India. However, due to declaration of the lockdown and
    suspension of international flights owing to outbreak of Novel Corona Virus (COVID-19), they
    are required to prolong their stay in India. Concerns have been expressed that this extra stay in
    India may make them a resident of India under section 6 of the Act.
  2. In order to avoid genuine hardship in such cases, the Board, in exercise of powers
    conferred under section 119 of the Act, has decided that for the purpose of determining the
    residential status under section 6 of the Act during the previous year 2019-20 in respect of an
    individual who has come to India on a visit before 22nd March, 2020 and:
    (a) has been unable to leave India on or before 31 sl March, 2020, his period of stay in India
    from 22nd March, 2020 to 31 sl March, 2020 shall not be taken into account; or
    (b) has been quarantined in India on account of Novel Corona Virus (Covid-19) on or after
    1 sl March, 2020 and has departed on an evacuation flight on or before 31 sl March, 2020
    or has been unable to leave India on or before 31 sl March, 2020, his period of stay from
    the beginning of his quarantine to his date of departure or 31 sl March, 2020, as the case
    may be, shall not be taken into account; or
    (c) has departed on an evacuation flight on or before 31 sl March, 2020, his period of stay in
    India from 22’d March, 2020 to his date of departure shalJ not be taken in to account

(Neha Sahay)
Under. Secretary (TPL)-I


Spread the love

Leave a Reply

Your email address will not be published.