An individual who is a citizen of India who is not liable to tax in any other country or territory has total income, other than from foreign sources, exceeding ₹15 lakh during the said FY, shall be a deemed resident of India.
I am a British citizen and lived in India for 12 years, i.e., from March 2008 to June 2020. In FY 20-21, I spent 88 days in India, during which I earned less than ₹15 lakh. Under the revised regulations for residency, would I be a resident, Resident but Not Ordinary Resident (RNOR), or a non-resident? Also, what are the limits, if any, on repatriating funds to the UK from the sale of land, purchased in 2006?
You shall have to determine your residential status for FY20-21. For this, you must meet any of the following conditions and both the additional conditions:
a) You are in India for 182 days or more in the FY; or b) you are in India for 60 days or more in the FY and 365 days or more in the four FYs immediately preceding the relevant FY. In the above condition, the period of 60 days is substituted by 182 days for a citizen of India or a person of Indian origin, who lives outside India and comes to visit India in the said financial year. The same applies for a citizen of India who leaves India in the said financial year for the purpose of employment outside India or as a member of a crew of an Indian ship.
There is also another rule of deemed residency. An individual who is a citizen of India who is not liable to tax in any other country or territory has total income, other than from foreign sources, exceeding ₹15 lakh during the said FY, shall be a deemed resident of India.
For a citizen of India or a person of Indian origin, who comes on a visit to India, the 60 days are considered changed in the following manner. If total income, other than income from foreign sources, exceeds ₹15 lakh, the 60 days are substituted by 120 days; in any other case, the 60 days are substituted by 182 days. Such persons are considered as deemed residents.
Additional conditions: you are a resident in India in two of the 10 FYs immediately preceding the relevant FY, and you are in India in the seven years immediately preceding the relevant FY for 729 days or more.
If you meet any of the first set of conditions and both the additional conditions, you shall be considered a resident in India. If you meet any of the first conditions but do not meet the additional ones, you shall be considered a resident but not ordinarily resident in India. If you do not meet any of the first conditions, you shall be a non-resident in India. Given the above, you are likely to be a non-resident in India.
RBI has specified limits for repatriation of sale proceeds of land. Such transfer may also be restricted if this is agricultural land. It would be advisable to consult an expert with full details of the property held by you.
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