CBDT is examining the matter and a clarification regarding this would be ‘issued soon’
India is likely to formulate relief plans for those who were forced to stay back in the country due to the lockdown and ban on international air travel. Foreign residents in India are liable for tax on their global income under the Income Tax Act (I-T Act).
The Central Board of Direct Taxes (CBDT) is examining the matter and a clarification regarding this would be 'issued soon', a government official told The Economic Times.
Moneycontrol could not independently verify the report.
A source told the paper the period of overstay could be exempted. Under present provisions, individuals living in India for 182 days or more become tax residents of India, wherein their global income becomes taxable in India as well.
The issue has apparently been flagged to the Prime Minister’s Office as countries such as the US, UK and Australia have already announced relaxations for the same. The formula prescribed by the OECD is that days overstayed due to force majeure caused by the COVID-19 pandemic be excluded while determining the period of stay for tax.
The Delhi High Court had also asked the Centre to exclude overstays due to the pandemic while determining the residential status for tax.
Facebook-BCG report suggests these measures for businesses to unlock the changing consumer behaviour in the current pandemic. Read More!