SC directed NRI to hunt non-resident standing in fiscal 2020-21 to be able to contact CBDT
The Apex Court ordered non-resident Indians to represent themselves before the Central Board of Direct Taxes to seek relief for NRIs due to the situation caused by COVID-19, which are eligible under the Income Tax Act of 1961 for fiscal 2020-21 Pay taxes.
This plea was brought by Gaurav Baid, a Dubai-based NRI, who came to India on a visit in March 2020 and was unable to return due to the pandemic, which is why his stay in India involuntarily lasted 182 days.
The petitioner feared that due to unforeseen circumstances he could lose his “non-resident status” and that his global income could be taxed in India.
The plea highlighted the problems faced by a number of NRIs who were left behind in India due to the imposition of a ban and suspension of international air travel.
The petitioner’s lawyer alleged that this issue affects all NRIs living in India who are unable to leave the country due to the pandemic and that therefore relief should be given.
The Treasury Department, against which this plea was filed, issued notices of residential status for fiscal year 2019-20 but did not provide clarification for fiscal year 2020-21.
The Supreme Court issued instructions that the petitioner’s NRI status should continue for the 2020-21 fiscal year regardless of his extended stay in India due to a pandemic and that his global income should be exempted from tax liability in India for ongoing finances year .
The Apex Court asked the petitioner to represent himself before CBDT, as this authority was only issuing circulars providing taxpayers benefits for the 2019-20 year period and it would be fair for CBDT to only provide relief.