Ans.
A
new provision is introduced vide Finance Act 2020 wherein an individual is
deemed to be “Resident” in India in the relevant previous year, irrespective of
number of days of stay in India, if the following conditions are satisfied –
a.
Individual
is Citizen of India;
and
b.
has
total income exceeding ? 15 lakhs (other than income from the foreign sources)
in India during the previous year;
and
c.
who
is not liable to tax in any other country or territory by reason on his domicile
or residence or any other criteria of similar nature.
As per Press Release dated February 2, 2020, the
above provisions will not apply to those individuals who are bonafide workers
in other countries including Middle East, and who are not liable to tax in the
said countries.
For
instance: Indian Citizen working in UAE is not liable to pay taxes in UAE as
there are no tax laws in UAE. As per Press Release, he /she will not be
considered as deemed to be ‘Resident’ in India, since he/she is a bonafide
worker in UAE.