With the September 30 deadline for filing income tax returns for 2020-21 (assessment year 2021-22) fast approaching, non-resident Indians (NRIs) who were forced to overstay in India because of the pandemic are worried about whether they should file their tax return as ‘resident’ or ‘non-resident’.
How is residential status determined?
According to Kapil Rana, founder and chairman of HostBooks: “The taxability of a person’s income depends on his residential status in the country.” That in turn depends on the number of days spent in India in the relevant financial year. A person’s residential status is tested every financial year.
A person can fall