Residential status as per FEMA NRI as per FEMA
FEMA contains separate and distinct provisions to determine residential status as compared to Income Act, 1961. Therefore, a person may qualify as resident under FEMA and he may not qualify as resident under Income Tax Act, 1961.
- (1888PressRelease) October 16, 2021 - FEMA has divided persons in following 2 parts:
Person resident in India
Person resident outside India, who is citizen of India is an NRI
Income tax divided residential status in following 3 parts
Resident and ordinarily resident
Resident and Not ordinarily resident
Non-Resident Indian (NRI)
Read more about residential status as per Income tax Act 1961
In this article we will discuss Residential status as per FEMA
1. Person resident in India as per FEMA means
Different criterias are given to determine residential status of different persons such as Individual, Company, Hindu Undivided Family (“HUF”) etc.
1.1 Residential status of Individual as per FEMA
As per Section 2(v) of FEMA, 1999, any individual shall be considered as resident under FEMA if he resides in India for more than 182 days during the course of the preceding Financial year.
Cases where person stay in India more than 182 days during previous year, still shall not be considered resident in India as per FEMA.
Where a person has gone outside India or stay outside India for the aim of employment outside India, or carrying out any business or vocation outside India, or where his intention to remain outside India for an uncertain period is indicated. He will not be treated as resident in India as per FEMA even if he stay in India for more than 182 days during the previous year.
Where a person has come to India or stays in India for purpose other than for the aim of employment in India, or for the purpose other than the purpose of carrying out any business or vocation in India, or and for the purpose other than his intention to remain in India for an uncertain period is indicated. He will not be treated as resident in India as per FEMA even if he stay in India for more than 182 days during the previous year.
Therefore, it is clear that FEMA considers the purpose of staying in India or outside India as a major factor to determine the residential status of individuals under FEMA instead of the number of days of stay.
Following are the few example to determine residential status under FEMA:
Read More Click Here - https://vjmglobal.com/fema/nri-as-per-fema/
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