Mrs.
Smita Anand, China, AAR No. 1091 of 2011, Date of Pronouncement
19.02.2014, Authority for Advance Rulings (Income Tax), New Delhi
Whether a
non resident citizen of India came to India after resigning from her
employment outside India with an intention of visiting family &
friends will be regarded as resident of India if her stay is more than
60 days in a year?
Held_Yes
During the
concerned financial year the applicant returned India after resigning
outside India and realized proceeds from exercise of ESOPs and RSUs. The
proceeds upon exercise of ESOPs & RSU's were credited in
applicant’s individual account and was remitted to Indian savings
account after conversion into Indian rupees. The revenue contended that
the provision of Explanation (a) or (b) to section 6(1) of the Act is
not applicable and the applicant being a resident will be taxable in
India. The authority of advance ruling finally held that the applicant's
case does not fall under Explanation (a) or (b) to section 6(1)(c) of
the Act and having fulfilled the requirements of section 6(1)(c) of the
Act her status will be resident in India. Consequently, the amount of
proceeds received in India on the said ESOPs and RSUs will be taxable in
India.
(Please click here for judgment)
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