Module: | Introduction, Scope and Residential Status
Q6: Consider the following scenarios, regarding residential status under FEMA:
1. Mr. A stayed in India for 200 days in the preceding financial year, and has no employment abroad. He is considered a Person Resident in India.
2. Ms. B left India on July 1st, to take up employment in London for 3 years. She is considered a Person Resident Outside India, from the date of her departure.
3. Mr. C lives in India, but is a US citizen. Citizenship determines his status under FEMA, so he is a Person Resident Outside India.
Which of the statements above, are correct?
2. Ms. B left India on July 1st, to take up employment in London for 3 years. She is considered a Person Resident Outside India, from the date of her departure.
3. Mr. C lives in India, but is a US citizen. Citizenship determines his status under FEMA, so he is a Person Resident Outside India.
Which of the statements above, are correct?
✅ Correct Answer: A
Statement 1 is correct: The primary test for residence is staying in India for more than 182 days in the preceding financial year.
Statement 2 is correct: There is an exception to the 182-day rule.
If a person leaves India for taking up employment abroad, they become a Person Resident Outside India immediately upon departure.
Statement 3 is incorrect: FEMA looks at residential status, not citizenship.
A US citizen living in India long-term is a Person Resident in India under FEMA.
Statement 2 is correct: There is an exception to the 182-day rule.
If a person leaves India for taking up employment abroad, they become a Person Resident Outside India immediately upon departure.
Statement 3 is incorrect: FEMA looks at residential status, not citizenship.
A US citizen living in India long-term is a Person Resident in India under FEMA.