TaxTMI 
TaxTMI 
TaxTMI 
Residential status of a Person Under FEMA,1999
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....sociates of persons(AOP), Artificial juridical person agencies as well as offices and branches, Agencies, offices and branches do not have independent status separate from their owners. yet these have been considered as person. Person Resident in India As per section 2(v) of FEMA Act,1999 define the "person resident in India" Means (i) a person residing in India for more than 182 days during the course of the preceding financial year * Exception:- The following person does not resident, in India even though they may have resided in India for more than 182 days * a person who has gone out of India or who stays outside India, for any of the three purposes given below * Exception :- a person who has come to or stays in India....
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.... one use the phrase "but not include". Third stage uses the phrase "otherwise than". use of two exception make it complex reading. * Example:-- * if a person comes to India on 1st June 2023 for visiting his parents. However, his parents fall sick and he stays till 31st March 2023. Thereafter he continues to stay in India. It is however certain that he will leave India in next 6 months when his parents recover. His stay in India is neither for employment, nor for business, nor for circumstances which show that he will stay in India for an uncertain period. * In such a case, * if he has resided in India for more than 182 days in FY 2019-20, he will continue to be a non-resident from 1st April 2020 also. In FY 2019....
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....ential status under the Income Tax Act, 1961. FEMA is a regulatory law. One has to know the person's status at the time of undertaking a transaction. * Example:- A person comes to India for employment, and if his status can be known only when the year is completed, how will he and other people enter into commercial transactions with each other? If he is considered as a Person Resident Outside India till the year is over, then people will not be able to enter into transactions with him. This is the reason why the residential status is not for a year but from particular date. * Difference between Stay and Reside: * There is distinction between 'stay' and 'reside'. 'Stay' means physical presence in India while 'reside' indicates pe....
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....tudies. * Mr. Ramesh had resided in India during financial year 2022-2023 for more than 182 days. After that he has gone to Singapore for higher studies. He has not gone out of, or stayed outside India for or on taking up employment, or for carrying a business or for any other purpose, in circumstances as would indicate his intention to stay outside India for an uncertain period. Accordingly, he would be 'person resident in India' during the financial year 2023-2024. * For the financial year 2024-2025, he would not have been in India in the preceding financial year (2023-2024) for a period exceeding 182 days. Accordingly, he would not be 'person resident in India' during the financial year 2024-2025. Example 2 :- : UeeLee Ltd. is a Tai....