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Definition Of NRI As Per Direct Tax Code (DTC)

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Direct Tax Code (DTC) will bring many changes in the existing tax structure of India which will impact many. Non Resident Indian’s (NRI’s) comes under the scope who will be significantly get impacted with the implementation of DTC.

Definition Of Resident Indian As Per Income Tax Act, 1961

According to the Income Tax Act 1961, a person qualifies as a Resident Indian only when he/she fulfills either of the following criteria for a financial year :-

1. If one stays in India for a period of 182 days or more either continuously or in multiple parts.

OR

If one stays in India for a period of 365 days or more in last 4 preceding years and 60 days or more in current financial year either continuously or in multiple parts.

2. If one stays in India for more than 182 days in least 9 out of 10 previous years.

3. If one stays in India for 730 days or more in last seven previous years

Else the person will be called as Non Resident Indian and will be liable to pay tax on their global income.

Direct tax code

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Definition Of Resident Indian As Per Proposed Direct Tax Code

According to Proposed DTC, a person will qualifies as a Resident Indian when he/she fulfills the following criteria for a financial year :-

If one stays in India for 60 days or more in current financial year and a total of 365 days in last 4 preceding years.

Else the person will be called as Non Resident Indian.

Global income of the one who fulfills the above criteria would become taxable if the person also stayed in India for nine out of 10 precedent years, or 730 days in the preceding 7 years.

ALSO READ :- Union Budget India: 2012-13, Expectations Of Salaried Class, Investors, Students, NRI’s And More

ALSO READ :- Steps To Plan Your Financials Before Becoming An Non Resident Indian (NRI)

ALSO READ :- RBI: Now NRIs/PIOs Can Maintain FCNR (B) Account In Any Freely Convertible Currency

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