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Double taxation unlikely for those stranded in India: IT | India News

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NEW DELHI: The government said on Wednesday that a person, who may have been stranded in India due to the suspension of international flights, can be categorized as an Indian resident for tax purposes, but there is little possibility of double taxation due to agreements to avoid the double taxation. .
“As the Budget did not provide any specific relief to people stranded in India due to tax residency, this clarification was expected. The 182 day condition remains as is, the use of the tiebreaker rule and the OECD guidance on incorporating tax residence will be of great help, ”said Amit Maheshwari, Managing Partner and International Tax Leader at Ashok Maheshwary & Associates.
A person is considered a resident if the duration of the stay exceeds 182 days and
their income from Indian sources exceeds 15 lakh rupees during 2020-21. Alternatively, a person of Indian origin or a foreign national can be treated as a resident for tax purposes if they stay in India for 60 days or more in 2020-21 and have spent 365 days or more in the country during the previous four years.
While acknowledging that there may be some people who may be residents of India, even if they have stayed less than 182 days in the country during the government, he said there may be a possibility of dual residency. But their income is unlikely to be taxed in India and the government cited double taxation agreements with the US, which states that double residency will occur if the person has permanent homes in both or neither of these countries, their center of vital interest. It cannot be determined, he is a national of both states or neither of them, or he has a habitual residence in both or neither of them.

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