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2014 (2) TMI 901 - AAR - Income TaxDetermination of Residential status u/s 6 of the Act - Taxability of the receipts – Held that:- When the assessee has come to India after leaving his employment outside India, the Explanation (a) to section 6(1)(c) will not be applicable - The total stay in India of the applicant for the preceding four years is for a period amounting to more than 365 days and total stay in India for the FY 2010-11 is for a period amounting in all to 119 days which is more than 60 days, requirements of sub-section (c) of section 6(1) is met by the applicant to become a resident in India. Taxability of proceeds received in India – Conversion of ESOPs and RSUs – Held that:- Explanation (a) to section 6(1)(c) is applicable only in a particular year when a person leaves India - The activities mentioned need not be necessarily proof of a visit, even a person staying permanently in India also does those activities - If a person returns to India after a long period of absence there is all the more reason he or she will like to go to visit relatives and friends in different places - Those activities are not necessarily indicators of a visit - When the applicant resigns from her employment in China, the reason for return to India does not seem to be only for a visit – the contention that the applicant came to India only for a visit cannot be accepted – thus, Explanation (b) to section 6(1)(c) of the Act is also not applicable - 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 - the amount of proceeds received in India on conversion of ESOPs and RSUs awarded to her by her employer in China will be taxable in India – Decided against Assessee.
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