Who is considered as a “resident in India” for the purposes of obtaining a foreign filing license?

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Foreign Filing License

An individual is said to be a resident in India in any previous year (April 1- March 31), if he—

  • is in India in that year for a period amounting in all to one hundred and eighty-two days or more; or
  • is in India for a period of at least 60 days during the relevant year and at least 365 days during the four years preceding that previous year.

In other words, if the person is eligible to pay taxes for the previous financial year, then he is a “person resident in India’ for that previous financial year.

Even if a person resides in India for more than one hundred and eighty-two days during the course of the preceding financial year, he may not be considered a person resident in India if he satisfies one of the conditions below:

(A) A person who has gone out of India or who stays outside India, in either case –

  • for or on taking up employment outside India, or
  • for carrying on outside India a business or vocation outside India, or
  • for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.

Even if a person resides in India for less than one hundred and eighty-two days during the course of the preceding financial year, he may be considered a person resident in India if he satisfies one of the conditions below: 20

(B) a person who has come to India or who stays in India, in either case,–

  • for or on taking up employment in India, or
  • for carrying on in India a business or vocation in India, or
  • for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period.
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