A non-resident person is a person who is not a resident of India for tax purposes. In order to determine whether a person is a non-resident or not, his residential status is required to be determined under section 6 of the Income-tax Act, 1961 as given below:
A person shall be deemed to be a resident in India in any previous year if anyonefulfils any of the following conditions:
1. If any person is in India for a time period of 182 days or more during the previous year or
2. If any person is in India for a time period of 60 days or more during the previous year and 365 days or more during the 4 years immediately preceding the previous year.
A person who does not fulfil both the conditions mentioned above shall be treated as non-resident in that previous year.
However, in respect of an Indian citizen and a person of Indian origin, who visits India during the year, as mentioned in (2) above, the period of 60 days shall be substituted with 182 days. A similar conception is provided to an Indian citizen who leaves India in any previous year as a member of a crew or for the purpose of employment outside India.
Finance Act, 2020, w.e.f. The assessment year 2021-22 has amended the above exception to provide that the period of 60 days referred in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose total income , Foreign sources other than income, during the previous year exceeding ₹ 15 lakh.
Finance Act, 2020 has also begin new section 6(1A) which is applicable from the assessment year 2021-22. It provides that an Indian citizen having a total income exceeding ₹ 15 lakh (other than income from foreign sources) shall be deemed to be resident in India if they should not liable to pay tax in any country.
|ITR – 2 – APPLICABILITY FOR NON- RESIDENT INDIVIDUAL|
|THIS RETURN IS APPLICABLE FOR INDIVIDUAL (RESIDENT OR NON RESIDENTS) AND HUF (HINDU UNDIVIDED FAMILY) NEITHER HAVING INCOME FROM PROFITS AND GAINS OF BUSINESS AND PROFESSIONAND, WHO IS NEITHER FILING ITR – 1, 2 OR 4.|
|ITR – 3 – APPLICABLE FOR NON- RESIDENT INDIVIDUAL|
|THIS RETURN IS APPLICABLE FOR INDIVIDUAL (RESIDENT OR NON RESIDENTS) AND HUF (HINDU UNDIVIDED FAMILY) HAVING ANINCOME FROM PROFITS AND GAINS OF BUSINESS AND PROFESSIONAND, WHO IS NEITHER FILING ITR – 1, 2 OR 4.|
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