5 Big Issues Arising from Sterner Residency Rules!
- Year of Publication: 2020
- ISBN: 0
Course Duration:
240 minutes (two episodes 120 mins each)
Course Background:
As you are aware, the Finance Bill, 2020 proposed amendments in the residency rules for individual –assessees’ [in section 6 of the Income-tax Act] by proposing that, (a) the number of days of stay required for an Indian citizen or a person of Indian origin (PIO) to be considered a resident, shall be reduced from 182 days to 120 days, and (b) an Indian citizen who is not liable to be taxed in any other country shall be deemed to be a resident in India. However, at the time of passing the Bill, the proposed residency rules were relaxed and such amendments were made applicable only to Indian citizens / POIs having India sourced income exceeding Rs. 15 lakh.
Furthermore, looking at the residency provisions from an India Inc. perspective, typically, under the domestic law, a company is treated as a resident of India in any PY if, (i) it is an Indian company, or, (ii) its place of effective management [PoEM] in that year is in India. In cases of dual residency conflicts w.r.t corporates, for Indian DTAAs covered under the MLI, Article 4(1) of the MLI provides that in the absence of a mutual agreement, a dual-resident company shall not be entitled to any relief or exemption from tax provided by the Covered tax Agreement [CTA] except to the extent and manner as agreed by the competent authorities of the contracting jurisdictions. Therefore, it becomes extremely vital for Indian multinational corporations to understand the stringent ramifications of such provisions and structure their business operations after careful planning to prevent such conflicts from taking place in the first place.
Against this backdrop, Taxsutra in conjunction with International Tax Stalwart Mr. Padamchand Khincha brings to you an insightful Master-Class series, "Scrutinizing 5 Big Issues Arising from Sterner Residency Rules".
What will the module cover ?
In this module, Mr. Khincha has exhaustively discussed the fundamental pillars & recent changes vis-à-vis determination of residency status for both, (i) individuals, as well as (ii) corporates.
In Part I of the Master-Class series, Mr Khincha has exclusively dealt with the determination of residency status w.r.t individual-assessees’, and shall take participants through the complex web of some key terms envisaged under Article 4 of the DTAA [Residence] such as “person”, “resident”, “liable to tax” as also the preamble. In this regard, few of the scenarios/issues that will be discussed in the Master-Class include the following:
1. Whether the amendment would impact the citizens of India who are staying elsewhere in the world?
2. What will be the scope of chargeability of total income of these citizens residing elsewhere?
3. What are the principles to be applied for the purpose of determining the place where income accrues?
4. Would a person who is regarded as a resident under the new rules, be able to claim the benefits of a Treaty?
5. What would be the other obligations of a person who qualifies as a resident under the new rules?
In Part II of the module, Mr. Khincha has extensively dealt with residency status related nuances affecting corporates in light of MLI, as also discussed several practical case studies, hypothetical scenarios & brought in some new ideas to the table which you haven't heard from anyone else before!
H. Padamchand Khincha is a partner in H C Khincha & Co and H C Khincha & Associates, Bangalore. With over 30 years of experience in corporate and international tax regime, he has spearheaded the income- tax consultancy and litigation practice. He advises multinational companies, Indian companies as well as high networth individuals on various tax matters including tax structuring, due diligence, transfer pricing and compliance aspects. He has represented large corporates in some of the high- profile cases before various Income- tax tribunals across India and has been associated with several landmark decisions too.
Padamchand Khincha is a prolific writer on various topics in income- tax. He has authored the book ‘Emerging Issues in International Taxation’. He has co- authored “Permanent Establishment – Emerging trends”, “Decoding section 5”, “Tax Holiday U/s.10A and 10B - An analysis”; “Tax Treaties of India - A compilation”; “Capital gains of Non- residents”; “Tax deduction at source”; “Concept of Indexation under capital gains”.
He has contributed to various articles and papers published by The Chamber of Tax Consultants, ITRAF, BCAS. He has authored and co- authored articles across various tax magazines including the Taxmann publication, Bombay Chartered Accountants Journal, ITR etc. He has delivered more than 500 lectures across the nation on several income- tax issues.
He has been actively engaged in several initiatives undertaken by the Institute of Chartered Accountants of India (ICAI). He was appointed the group leader for preparing the approach paper on the Guidance Note on Transfer Pricing. He was instrumental in making a critical analysis of the Direct Tax code as a member of the team constituted by ICAI on the request on CBDT. He was a member of Committee of ICAI involved in preparing the technical background paper on Income Computation and Disclosure Standards. He deposed as an expert before (a) high powered committee on E. commerce constituted by the Central Board of Direct Taxes in India; (b) Rangachary Committee set up to “Review Taxation of Development Centres and the IT Sector; and (c) by the A P Shah Committee constituted by the Government of India to examine the matters relating to MAT on FII/ FPI(s). He was a country reporter for India for IFA Rio de Janeiro Congress 2017 on ‘Assessing BEPS - Origin, Standards, Responses’. He is on the editorial board constituted for International Tax Journal published by the Chamber of Tax Consultants.
His teaching stints in the past include guest lectures at IIM, Bangalore; intensive coaching classes of ICAI; faculty at the Direct Taxes Training Institute of the Income Tax Department. Padamchand Khincha is a Commerce graduate from the University of Bangalore securing 5th Rank at the University level. He holds a Bachelor’s degree in Law.
He qualified as a Chartered Accountant in 1982 by securing the 25th rank.
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
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- Year of Publication: 2020
- ISBN: 0
Course Duration:
240 minutes (two episodes 120 mins each)
Course Background:
As you are aware, the Finance Bill, 2020 proposed amendments in the residency rules for individual –assessees’ [in section 6 of the Income-tax Act] by proposing that, (a) the number of days of stay required for an Indian citizen or a person of Indian origin (PIO) to be considered a resident, shall be reduced from 182 days to 120 days, and (b) an Indian citizen who is not liable to be taxed in any other country shall be deemed to be a resident in India. However, at the time of passing the Bill, the proposed residency rules were relaxed and such amendments were made applicable only to Indian citizens / POIs having India sourced income exceeding Rs. 15 lakh.
Furthermore, looking at the residency provisions from an India Inc. perspective, typically, under the domestic law, a company is treated as a resident of India in any PY if, (i) it is an Indian company, or, (ii) its place of effective management [PoEM] in that year is in India. In cases of dual residency conflicts w.r.t corporates, for Indian DTAAs covered under the MLI, Article 4(1) of the MLI provides that in the absence of a mutual agreement, a dual-resident company shall not be entitled to any relief or exemption from tax provided by the Covered tax Agreement [CTA] except to the extent and manner as agreed by the competent authorities of the contracting jurisdictions. Therefore, it becomes extremely vital for Indian multinational corporations to understand the stringent ramifications of such provisions and structure their business operations after careful planning to prevent such conflicts from taking place in the first place.
Against this backdrop, Taxsutra in conjunction with International Tax Stalwart Mr. Padamchand Khincha brings to you an insightful Master-Class series, "Scrutinizing 5 Big Issues Arising from Sterner Residency Rules".
What will the module cover ?
In this module, Mr. Khincha has exhaustively discussed the fundamental pillars & recent changes vis-à-vis determination of residency status for both, (i) individuals, as well as (ii) corporates.
In Part I of the Master-Class series, Mr Khincha has exclusively dealt with the determination of residency status w.r.t individual-assessees’, and shall take participants through the complex web of some key terms envisaged under Article 4 of the DTAA [Residence] such as “person”, “resident”, “liable to tax” as also the preamble. In this regard, few of the scenarios/issues that will be discussed in the Master-Class include the following:
1. Whether the amendment would impact the citizens of India who are staying elsewhere in the world?
2. What will be the scope of chargeability of total income of these citizens residing elsewhere?
3. What are the principles to be applied for the purpose of determining the place where income accrues?
4. Would a person who is regarded as a resident under the new rules, be able to claim the benefits of a Treaty?
5. What would be the other obligations of a person who qualifies as a resident under the new rules?
In Part II of the module, Mr. Khincha has extensively dealt with residency status related nuances affecting corporates in light of MLI, as also discussed several practical case studies, hypothetical scenarios & brought in some new ideas to the table which you haven't heard from anyone else before!
H. Padamchand Khincha is a partner in H C Khincha & Co and H C Khincha & Associates, Bangalore. With over 30 years of experience in corporate and international tax regime, he has spearheaded the income- tax consultancy and litigation practice. He advises multinational companies, Indian companies as well as high networth individuals on various tax matters including tax structuring, due diligence, transfer pricing and compliance aspects. He has represented large corporates in some of the high- profile cases before various Income- tax tribunals across India and has been associated with several landmark decisions too.
Padamchand Khincha is a prolific writer on various topics in income- tax. He has authored the book ‘Emerging Issues in International Taxation’. He has co- authored “Permanent Establishment – Emerging trends”, “Decoding section 5”, “Tax Holiday U/s.10A and 10B - An analysis”; “Tax Treaties of India - A compilation”; “Capital gains of Non- residents”; “Tax deduction at source”; “Concept of Indexation under capital gains”.
He has contributed to various articles and papers published by The Chamber of Tax Consultants, ITRAF, BCAS. He has authored and co- authored articles across various tax magazines including the Taxmann publication, Bombay Chartered Accountants Journal, ITR etc. He has delivered more than 500 lectures across the nation on several income- tax issues.
He has been actively engaged in several initiatives undertaken by the Institute of Chartered Accountants of India (ICAI). He was appointed the group leader for preparing the approach paper on the Guidance Note on Transfer Pricing. He was instrumental in making a critical analysis of the Direct Tax code as a member of the team constituted by ICAI on the request on CBDT. He was a member of Committee of ICAI involved in preparing the technical background paper on Income Computation and Disclosure Standards. He deposed as an expert before (a) high powered committee on E. commerce constituted by the Central Board of Direct Taxes in India; (b) Rangachary Committee set up to “Review Taxation of Development Centres and the IT Sector; and (c) by the A P Shah Committee constituted by the Government of India to examine the matters relating to MAT on FII/ FPI(s). He was a country reporter for India for IFA Rio de Janeiro Congress 2017 on ‘Assessing BEPS - Origin, Standards, Responses’. He is on the editorial board constituted for International Tax Journal published by the Chamber of Tax Consultants.
His teaching stints in the past include guest lectures at IIM, Bangalore; intensive coaching classes of ICAI; faculty at the Direct Taxes Training Institute of the Income Tax Department. Padamchand Khincha is a Commerce graduate from the University of Bangalore securing 5th Rank at the University level. He holds a Bachelor’s degree in Law.
He qualified as a Chartered Accountant in 1982 by securing the 25th rank.
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
