The Central Board of Direct taxes (CBDT) has received various representations requesting for relaxation in determination of residential status for previous year 2020-21 from individuals who had come on a visit to India during the previous year 2019-20 and intended to leave India but could not do so due to suspension of international flights. The matter has since been examined by CBDT.

In this context, Circular No. 2 of 2021 has been issued by CBDT today. Vide the said Circular, it has been provided that if any individual is facing double taxation even after taking into account the relief provided by the relevant Double Taxation Avoidance Agreement (DTAA), he/she may furnish the specified information by 31st March, 2021 in Form –NR annexed to the said Circular. This form is to be submitted electronically to the Principal Chief Commissioner of Income-tax (International Taxation). Circular No.2/2021 can be accessed on www.incometaxindia.gov.in.

Residency determination relief: submit Form-NR for double taxation review where DTAA relief is insufficient, deadline specified. Affected individuals unable to leave India due to suspension of international flights who face double taxation despite DTAA relief may electronically furnish specified information in Form NR to the Principal Chief Commissioner of Income tax (International Taxation) by the deadline specified in the Circular, which is available on the income tax department website.