Date of becoming nri
S.K.Goel
(Querist) 20 December 2017
This query is : Resolved
My son went to USA for higher studies in Aug 2008. He completed MS in Dec 2010.
Since JAN 2011 he is doing Job there.
In SBI NRO account conversion , he has to write date of becoming NRI.
What should be the date ?
SKGoel
kavksatyanarayana
(Expert) 20 December 2017
if he attains majority at the time of going abroad you may give that date.
R.Ramachandran
(Expert) 21 December 2017
According to Section 115C (e) of Income Tax Act, 1961, "non-resident Indian" means an individual, being a citizen of India or a person of Indian Origin who is not a "resident".
Now the question comes, who is a "resident"?
Before knowing the answer to that, one has to understand certain relevant definitions in the Income Tax Act.
Section 2(9) defines "Assessment year" as the period of twelve months commencing on the 1st day of April every year. (e.g. 1.4.2018 to 31.3.2019 this is called A.Y. 2018-19).
According to Section 2(34), "previous year" means the previous year as defined in Section 3.
Section 3 defines "previous year" to mean the financial year immediately preceding the assessment year. (For example, for A.Y. 2018-19, the previous year is 2017-18)
Now coming back to the question as to who is a "Resident".
As per Sec. 6 of the I.T. Act, an individual is said to be resident in India, if-
(a) he is in India in the previous year for a total of 182 days or more (it can be in different spells); or
(b) he has been India for 365 days or more (it can be in different spells) in preceding 4 previous years + 60 days or more in the previous year;
By going through the above provisions, when the above parameters fails, then in that financial year a person should be considered as NRI.
(How long he was in India in a particular year after going to a foreign country, can be calculated from the entries in a person's passport)
Guest
(Expert) 21 December 2017
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