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Indian citizens departing India for employment abroad for the first time?


 

1. How is residential status determined for an individual under the Income Tax Act (ITA)?

Under the Income Tax Act, an individual's residential status for a specific Assessment Year (AY) is based on their stay in India during the preceding Previous Year (PY). Generally, an individual is considered a resident if they stay in India for at least 182 days in the relevant PY or stay for at least 365 days in the four years preceding the relevant PY and at least 60 days in the relevant PY.

 

2. Is there a special rule for determining the residential status of an Indian citizen leaving India for employment under the ITA?

Yes, for an Indian citizen leaving India for employment abroad for the first time, the second condition for residency (stay of at least 365 days in the preceding four years and at least 60 days in the relevant PY) is modified. Such individuals are considered residents only if they stay in India for 182 days or more in the relevant Previous Year.

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