March 5 2021

COVID-19 Pandemic: India Clarifies Residence Status of Certain Individuals

Source: IBFD Tax Research Platform News

The Central Board of Direct Taxes (CBDT) has clarified that an individual forced to stay in India due to travel restrictions and who is facing double taxation on income for previous year (PY) 2020-21 may furnish relevant information of his circumstances to the CBDT for the purpose of claiming double tax relief.

Based on the submitted information, the CBDT will examine:

  • whether any relaxation is required to be provided; and
  • if required, whether general relaxation is required for a class of individuals or specific relaxation is required for individual cases.

The required information must be submitted electronically via Form-NR by 31 March 2021.

The CBDT has initially clarified that the possibility of double taxation of an individual's PY 2020-21 income does not exist when taking into consideration the provisions of the Income Tax Act read in conjunction with tax treaties. However, in the interest of understanding possible situations of double taxation, the CBDT will allow affected individuals to submit their relevant information.

The CBDT previously clarified that the period of stay in India of certain individuals will not be taken into account in determining the individual's residence status for the PY 2019-20, subject to conditions.

Full details are available here.