Module: General Practice
Q8: Scenario: Mr. Arjun, an Indian citizen who has lived in Mumbai all his life, accepts a job offer in London. He leaves India on September 25, 2025, to join his new employment. He does not visit India for the rest of the financial year.
What is his residential status under FEMA for the period October 1, 2025, to March 31, 2026?
✅ Correct Answer: C
Application of Section 2(v) - The "Current Year" Override: Normally, residential status is determined by the stay in the preceding financial year.
However, the definition contains a crucial exception clause.
A person is excluded from being a "Person Resident in India" if they leave India during the current year for: 1. Employment outside India.
2. Business/Vocation outside India.
3. Uncertain period.
The Outcome: Even though Mr.
Arjun satisfies the "preceding year" test (he was in India) AND the "current year physical stay" test (he was in India >182 days from April to Sept), his status changes to PROI the moment he leaves for employment.
The "Employment Exception" overrides the day-count test for the remainder of the year.
He becomes PROI w.e.f. September 25, 2025.
However, the definition contains a crucial exception clause.
A person is excluded from being a "Person Resident in India" if they leave India during the current year for: 1. Employment outside India.
2. Business/Vocation outside India.
3. Uncertain period.
The Outcome: Even though Mr.
Arjun satisfies the "preceding year" test (he was in India) AND the "current year physical stay" test (he was in India >182 days from April to Sept), his status changes to PROI the moment he leaves for employment.
The "Employment Exception" overrides the day-count test for the remainder of the year.
He becomes PROI w.e.f. September 25, 2025.