FEMA and the Income-tax Act: Understanding your tax obligations before you move abroad – ​Compliance with FEMA | The Economic Times

Clipped from: https://economictimes.indiatimes.com/nri/invest/fema-and-the-income-tax-act-understanding-your-tax-obligations-before-you-move-abroad/compliance-with-fema/slideshow/83204678.cms


​Compliance with FEMA

According to an article by Archit Gupta, Founder and CEO, ClearTax, any person moving abroad or coming back to India must be compliant with FEMA (Foreign Exchange Management Act) and the Income-tax Act. FEMA governs the regulatory compliances, whereas the Income Tax Act will govern the tax aspect on the income earned. According to the FEMA Act, an individual is considered a ‘resident’ in India if he is present for 182 days or more in the last F.Y. However, this stay criterion does not apply to individuals migrating for employment or for carrying on a vocation/business or to stay for an uncertain period. Thus in FEMA, the intention of the stay would largely determine the status.Getty Images

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