Power of the Central Board of Direct Taxes to prescribe the manner and procedure for computing period of stay in India

[Admin TMI]

Question - What are proposed changes in manner and procedure for computing period of stay in India in Finance Bill 2015 ?

[Admin TMI]

Power of the Central Board of Direct Taxes to prescribe the manner and procedure

for computing period of stay in India

The provisions of sub-section (1) of section 6 provide the conditions under which an individual is held to be resident in India. The determination is based, inter alia, on the number of days during which such individual has been in India during a previous year.

In the case of foreign bound ships where the destination of the voyage is outside India, there is uncertainty with regard to the manner and basis of determination of the period of stay in India for crew members of such ships who are Indian citizens.

In view of the above, it is proposed to amend the Act to provide that in the case of an Individual, being a citizen of India and a member of the crew of a foreign bound ship leaving India, the period or periods of stay in India shall, in respect of such voyage, be determined in the manner and subject to such conditions as may be prescribed.

This amendment will take effect retrospectively from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent assessment years.

AI Summary

Period of stay computation for Indian ship crew: central board may prescribe manner and conditions, affecting residence status. The period of stay in India for an Indian citizen who is a member of the crew of a foreign bound ship shall, in respect of such voyage, be determined in the manner and subject to such conditions as may be prescribed; the amendment is retrospective from 1 April 2015 and applies to the assessment year 2015 16 and subsequent years.