Relief for taxpayers going abroad on business visa: ITAT Ruling
Some Indians go abroad as employees, while others choose to work for themselves. Being Indian citizens, both are subject to the income tax laws of the country. But, will ’employment’ will be governed by similar tax laws as ‘self-employment’ for these taxpayers generating overseas income?
Mumbai ITAT Rules that the term “Employment” under Section 6 – Explanation 1(a) of the Income Tax Act, 1961 shall include “Self-Employment”In accordance with Section 6(1) of the Income Tax Act, 1961, an individual would be considered as an Indian tax resident if he has stayed in India for a period of 365 days or more within 4 years preceding the relevant financial year and has stayed in India for a period of 60 days or more in the relevant financial year.