Clause 4 - Amendment of section 6. - Finance Bill, 2020

Amendment of section 6. 4. In section 6 of the Income-tax Act, with effect from the 1st day of April, 2021, (a) in clause (1), in Explanation 1, in clause (b), for the words one hundred and eighty-two days , the words one hundred and twenty days shall be substituted; (b) after clause (1), the following clause shall be inserted, namely: (1A) Notwithstanding anything contained in clause (1), an individual, being a citizen of India, shall be deemed to be resident in India in any previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature. ; (c) for clause (6), the following clause shall be substituted, namely: '(6) A person is said to be not ordinarily resident in India in any previous year, if such person is- (a) an individual who has been a non-resident in India in seven out of the ten previous years preceding that year; or (b) a Hindu undivided family whose manager has been a non-resident in India in seven out of the ten previous years preceding that year.'.