CBDT prescribed Form-NR
CBDT prescribed Form-NR to furnish the information by individuals affected by change in residential status due to Covid-19
The Central Board of Direct Taxes (CBDT) has issued a circular on March 3, 2021, clarifying that Non Resident individuals facing the issue of double taxation on their income for the Financial Year (FY) 2020-21 due to extended stay in India because of COVID-19 related travel restrictions have to furnish the specific information in the newly notified “Form-NR” by March 31, 2021.
The CBDT has issued circular in response to the various representations requesting for relief in determination of the residential status for FY 2020-21 from individuals who visited to India during FY 2019-20 and remain stranded in India due to suspension of international flights when the nationwide lock down was imposed in the end of March 2020.
There were concerns that the extended stay could lead to these individuals becoming residents in India as per the provisions of the Income Tax Act, 1961 which considers the stay duration for determining residential status and ambit of income (including global income) chargeable to tax in India. Earlier, in May 2020 for the FY 2019-20, CBDT clarified that...
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