New Delhi, May 8: In a major relief to scores of overseas Indians who are stranded in the country since the imposition of lockdown, the Finance Ministry exempted them from filing income tax returns. As per the norms, a person designated with the non-resident Indian (NRI) status is not required to file the I-T returns if his stay in India is less than 120 days per year. NRI Booked in New Jersey After Her 'Mera Bharat Mahan' Video Shows Her Deriding US Response to Coronavirus in Comparison to India.

Due to the lockdown which came into effect from March 25, several NRIs have overstayed the 120-day period which exempts them from filing the tax returns. An apprehension also existed that their NRI status may be derecognised due to their prolonged stay, and they may be deemed as regular citizens.

The Finance Ministry, however, announced that it would not be counting the days stayed by NRIs in India after the imposition of lockdown. The count would be resumed after the international flights are operational for all citizens.

The decision was finalised by Finance Minister Nirmala Sitharaman, considering various representations received from people who had to prolong their stay in India due to the lockdown. Sitharaman allowed discounting of prolonged stay period in India for the purpose of determining residency status, a government statement said.

The Finance Ministry further stated that as the lockdown continues during the financial year 2020-21 and it is not yet clear as to when international flight operations would resume, a circular excluding the period of stay of these individuals up to the date of normalisation of international flight operations, for determination of the residential status for the financial year 2020-21 shall be issued after the flights are resumed.

The Central Board of Direct Taxes (CBDT) issued a necessary circular to this effect. The circular makes it clear that any period of stay in India post March 22 to March 31 will not be included for calculation of number of days required to determine residency status for tax purpose. Also, visitors who had to be quarantined for a period even before March 22 will also get relief.

Even if an individual has departed on an evacuation flight on or before March 31, 2020, his period of stay in India from March 22 to his date of departure shall not be taken into account.

It may be noted that there are 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 financial year for maintaining their status as non-resident or not ordinary resident in India.

The status of an individual whether he is resident in India or a non-resident or not ordinarily resident, is dependent, inter-alia, on the period for which the person is in India during a year.

(With IANS inputs)

(The above story first appeared on LatestLY on May 08, 2020 10:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).