Section 6 of the Income-tax Act, 1961 (“The Act”) contains provisions relating to the residency of a person. The status of an individual as to whether he is resident in India or a non-resident or not ordinarily a resident, is dependent, inter-alia, on the period for which the person is in India during a year.
Various representations have been received stating that there is number of individuals who had come on a visit to India during the previous year 2019-20 for a particular duration and intended to leave India before the end of the previous year for maintaining their status as a non-resident or not ordinarily resident in India. However, due to the declaration of the lockdown and suspension of international flights owing to an outbreak of the Novel Corona Virus (COVID-19), they are required to prolong their stay in India. Concerns have been expressed that they may involuntarily end up becoming Indian residents without any intention to do so.