Relief for NRIs: Lockdown period won’t count for tax purposes

Relief for NRIs: Lockdown period won’t count for tax purposes

Prolonged stay in India not to be counted to determine NRIs, foreign nationals residency status.. Indian Finance minister Nirmala Sitharaman on Friday allowed discounting of prolonged stay period in the country for determining the residency status for Non Resident Indians (NRIs).. The latest circular issued by the Central Board of Direct Taxes (CBDT) said it would exclude the period of stay of such people up to the date of normalisation of international flight operations and their departures from India, while determining the residency status.. The board's decision will provide relief to people who may have technically become residents as per income tax rules due to travel restrictions and are expected to pay their global income to tax.. Dixit Jain, managing director, The Tax Experts DMCC, said: "The latest circular has come as massive relaxation to NRIs who went to India and stuck due to the Covid-19 situation.. Lot of NRIs plan their trip to India in such ways where they don't exceed 182 days to become resident in India this will help lot of NRIs as now they will be able to exclude these days and may be able to safeguard themselves from being Resident.". The board's decision comes after