The Centre on May 8 said the period of lockdown and quarantined in India will not be taken into account for determination of residential status for FY 2019-20 for those individuals who had come on visit to India but not able to leave due to the coronavirus-induced lockdown.
The Central Board of Direct Taxes in a circular said the decision has been taken following various representations in the matter, as concerns were expressed that a prolonged stay in the country may make them a resident of India under Section 6 of the Income Tax Act, 1961.
This particular section of the act contains provisions relating to the determination of the residency of a person.
The relaxation will be applicable in the case of the following people:
>> Those who have been unable to leave India on or before March 31, 2020. Their period of stay from March 22, 2020 to March 31, 2020, shall not be taken into account.
>> Those who have been quarantined in India on account of the novel coronavirus (or COVID-19) on or after March 1, 2020 and have departed on evacuation flights on or before March 3e1, 2020. Their period of stay from the beginning of quarantine to the date of departure of March 31, as the case may be, shall not be taken into account.
>> Those who departed on an evacuation flight on or before March 31, 2020. Their period od stay in India from March 22, 2020 to their date of departure shall not be taken into account.
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