Full resident or just resident not ordinary resident?

#1
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  • chrisito is offline
#1

Full resident or just resident not ordinary resident?

Bit of a complex tax question and I have done a lot of searching online without any conclusive answer.

I have been living in working in India for a couple of years now and am reaching the point where I will be an ordinary resident as well as just a resident. I.e. I'm about to be liable to pay Indian tax on my worldwide income.

Before working in India and getting my employment visa, I also spent some considerable time as a tourist.

My understanding is that if you are on a tourist visa then you do not qualify to be a Indian resident no matter how many days you spend in the country in any tax year.

But for ordinary residency rules, they stipulate that for the 7 previous years, your stay should not be for 730 days or more. Do you have to include days spent as a tourist?

If anyone has any ideas, they'd be much appreciated. Or failing that, any contacts (in Mumbai preferably) who might know. My accountant here has no idea.
#2
Jul 20th, 2008, 15:32 In charge, navel affairs
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  • capt_mahajan is offline
#2
Tricky one. I am confident you will get confusing input about this, even with professionals.
#3
Jul 20th, 2008, 22:28 Maha Guru Member
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  • KABAARY is offline
#3
Quote:
My understanding is that if you are on a tourist visa then you do not qualify to be a Indian resident no matter how many days you spend in the country in any tax year.
That's the case under FEMA where intent/purpose of visit is relevant. Under Section 6 of the Income Tax Act (which deals with residency), the purpose of stay is not relevant for residential status which is based purely on the number of days of stay in India.
Quote:
Do you have to include days spent as a tourist?
In view of what is stated above, yes.

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