- Under employment there should be a relationship of employer and employee. Self-employment is a business/profession and not an employment. In your case, instead of 60 days period of 182 days would be applicable. You would be treated as non-resident if you stay in India for less than 182 days in a financial year
Definition of Employment
According to Income Tax Act Section 6 (a) being a citizen of India, who leaves India in any previous year as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted ; "Purposes of Employment outside India" - I cannot find the proper definition of employment as per Income Tax Act. If someone leaves India to run his business (business setup outside India) or sole-establishment (setup outside India) (self-employed) will that be considered as Purposes of Employment outside India and will be eligible to live in India for less than 182 days in a financial year and still considered to be as Non-Resident for that given financial year under Income Tax Act, Given that - the person has lived for 365 days in India for all the previous years (except the financial year mentioned above) - He is an Indian Citizen - His income from India is less than Rs. 15 lakhs.
Asked 1 year ago in Income Tax
- If self-employment is a business/profession and not an employment. In that case, it doesn't come under the purpose of self employment, if I am doing business in UAE, how is the 182 would be applicable for me instead of 60 days. - The Commissioner Of Income Tax vs Sri. O.Abdul Razak on 13 December, 2010, this case judgement was in our view, taking up own business by the assessee abroad satisfies the condition of going abroad for the purpose of employment covered by explanation (a) to Section 6(1)(c) of the Act. Therefore, we hold that the Tribunal has rightly held that for the purpose of the explanation, employment includes self employment like business or profession taken up by the assessee abroad. Thanks for your precious time.
Asked 1 year ago
There is a typing error. In your case it is 60 days and 365 days or more during four years immediately preceding the previous year 2023-24. Sole proprietorship is a business and not an employment.
Hi, the term employment is not defined. However, it has been held by the courts in several instances that employement includes self employment.
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