COVID-19 : Centre Grants Relaxations To NRIs On 'Residential Status' Under Income Tax Act For FY 2019-20

Taking note of the COVID-19 lockdown, the Central Government has granted relaxations to the criteria for determining 'residential status' under Section 6 of the Income Tax Act,1961, for the Financial Year 2019-20.As per Section 6 of Income Tax Act, stay for 182 days or more in India during a financial year will make an individual 'resident in India' for the purposes. Taking note of the COVID-19 lockdown, the Central Government has granted relaxations to the criteria for determining 'residential status' under Section 6 of the Income Tax Act,1961, for the Financial Year 2019-20. As per Section 6 of Income Tax Act, stay for 182 days or more in India during a financial year will make an individual 'resident in India' for the purposes of income tax liability. 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 : has been unable to leave India on or before 31st March, 2020, his period of stay in India from 22nd March, 2020 to 31st March 2020 shall not be taken into account; has been quarantined in India on account of Novel Corona Virus on or after 1st March, 2020 and has departed on an evacuation flight on or before 21st March 2020 or has been unable to leave India on or before 31st March, 2020, his period of stay from the beginning of his quarantine to his date of departure or 31st March, 2020, as the case may be, shall not be taken into account; or has departed on an evacuation flight on or before 31st March, 2020, his period of stay in India from 22nd March, 2020 to his date of departure shall not be taken into account.