Person Resident in India:

It becomes essential to know the definition of resident person in India for multiple purposes. FEMA makes clear distinction between resident and non-resident. As per section 2(u) of FEMA,  ‘Person’ includes an individual, HUF, company, firm, an association of persons and any agency, office or branch owned or controlled by such person.

A person resident in India means the “A person residing in India for more than 182 days during the course of preceding financial year. However, it does not include a person who has gone out of India or who stays outside India for employment outside India or carrying on business or vocation outside India or for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.

A person residing in India for more than 182 days during the course of preceding financial year. However, it does not include a person who has come to or stays in India, in either case, otherwise than

  • He has come for or taking employment in India
  • For carrying on business or vocation in India
  • For any other purpose, in such circumstances, as would indicate his intention to stay in India for an uncertain period.

In other words, even in this case, residing in India in previous year for 182 days is essential.

Broadly, ‘person resident of India’ includes persons of India (except those staying abroad for work or business or other purpose) and foreign persons who come to India or stay in India for employment, carrying out business or other purpose. Even office, branch or agency can be ‘person’.

Person residing for less or more than 182 days in the Previous year:

If a person stayed in India during 2001-2002 for less than 182 days, he will not be a ‘resident’ during 2002-03 even if he resides in India for more than 182 days in that year, as what is relevant is ‘preceding year’. However, if he resides in India for over 182 days in 2002-03, he will be ‘resident’ in 2003-04.

But if he leaves India for the purpose of taking up employment outside India during 2003-04, or for any other purpose as business/vocation outside India, or for any other purpose as would indicate his intention to stay outside India for an uncertain period, he would cease to be person resident in India from the date of his departure.

Even if a person is a foreign citizen, if he has not left India for any of aforesaid purposes during 2003-04, he would be considered, ‘person resident in India’ during the financial year 2003-04.

There is distinction between ‘stay’ and ‘reside’. ‘Stay’ means physical presence in India while ‘reside’ indicates permanency. Thus, even if an airplane pilot ‘stays’ in India for more than 182 days during his transit travel, it cannot be said that he ‘resides’ in India. One major distinction between Income Tax and FEMA provisions is that for purpose of Income Tax, purpose of stay (in India or abroad) is not relevant, only duration of stay is relevant.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a care

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.