Module: General Practice
Q4: Under Section 2(v) of FEMA, 1999, a "Person Resident in India" is generally defined as a person residing in India for more than 182 days during the course of the preceding financial year. Who among the following is EXCLUDED from this definition (i.e., treated as a Person Resident Outside India) despite satisfying the 182-day condition?
✅ Correct Answer: A
The "Split Residency" Logic: Section 2(v) defines a "Person Resident in India" (PRI) based on a mechanical test: staying in India for >182 days in the preceding financial year.
However, there are specific Exceptions (Exclusions). A person is NOT a PRI if they go outside India for: 1. Taking up employment outside India.
2. Carrying on a business or vocation outside India.
3. Any other purpose indicating an intention to stay outside India for an uncertain period.
Application: Even if a person was in India for 365 days last year, the moment they leave India for employment (Option A), they lose their PRI status immediately.
Options B and D are for specific/certain periods (tourism/study) and do not trigger the exclusion.
Option C refers to someone coming to India, which has its own inclusion criteria (employment/business/uncertain period).
However, there are specific Exceptions (Exclusions). A person is NOT a PRI if they go outside India for: 1. Taking up employment outside India.
2. Carrying on a business or vocation outside India.
3. Any other purpose indicating an intention to stay outside India for an uncertain period.
Application: Even if a person was in India for 365 days last year, the moment they leave India for employment (Option A), they lose their PRI status immediately.
Options B and D are for specific/certain periods (tourism/study) and do not trigger the exclusion.
Option C refers to someone coming to India, which has its own inclusion criteria (employment/business/uncertain period).