Page 28 - Jignyasa-June 2020

II. Amendment 1: Indian Citizens or b) Indian Citizen/ Person of Indian
1
PIOs coming on a visit to India Origin who being outside India
comes on a visit to India
III. Amendment 2: Section 6(1A) -
Deemed Indian Resident For above referred individuals, the 60
days’ stay mentioned in the second
IV. Amendment 3 – New clauses primary condition is replaced by 182 days’
inserted in Section 6(6) stay in India.
V. Various Other Implications
Section 6(6): Ordinarily Resident or
VI. Covid-19 Relief Not Ordinarily Resident
VII. Flowchart for Residential Status of Section 6(6) of the Act prescribes
Individuals additional conditions to determine whether
VIII. Illustrations the Resident individual is Ordinarily
Resident or Not Ordinarily Resident.
IX. Conclusion An individual has to fulfil any one of
X. Glossary the following conditions to qualify as
a Resident and Not Ordinarily resident
(RNOR):
I. Provisions in relation to a. Has been ‘Non-Resident’ in India in 9
residential status of Individuals
prior to amendment by Finance out of 10 PYs preceding the relevant
Act, 2020 PY or
b. Stay in India for ≤ 729 days in 7
Section 6(1): Resident or Non- PYs preceding the relevant PY.
Resident
Section 6(1) stipulates two primary II. Amendment 1: Indian Citizens or
conditions for determining residential PIOs coming on a visit to India
status for an individual. An individual is
said to be Resident in India if he satisfies A. Concerns leading to the
either of the two following primary amendment
conditions: Earlier, Explanation 1 to Sec 6(1) inter
First Condition: Stay in India ≥ 182 alia provided relaxation to Indian Citizens/
days in the relevant PY or Persons of Indian Origin allowing them
to visit India for longer duration without
Second Condition: Stay in India ≥ 60 becoming Indian resident. In such cases,
days in the relevant PY and ≥ 365 days 60 days referred to in second primary
in 4 PYs preceding the relevant PY condition was replaced by 182 days.
Further, Explanation 1 to Section 6(1) Due to this, practically focus was always
provides relaxations to following two drawn on the first primary condition.
categories of individuals: Certain individuals misused this relaxation
by managing their stay in India so as to
a) Indian citizen who leaves India as a remain non-resident in perpetuity. In this
crew member of the Indian ship or way, such individuals used to actually
for employment outside India or carry out substantial economic activities

1. As per sec 115C of the Act, a person shall be deemed to be of Indian origin if he, or either of his
parents or any of his grand-parents, was born in undivided India

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