Private Client 2020 - Promotional Guidelines

1 Connection Factors

1.1 To what extent is domicile or habitual residence relevant in determining liability to taxation in your jurisdiction?

Unless an individual is liable to tax in India and another country, factors such as domicile or habitual residence are not relevant to determine Indian tax liability. If an individual is a dual tax resident, domicile and habitual residence contribute to determining his/her fiscal residence as per the tie-breaker test provided in the relevant Double Taxation Avoidance Agreements ("DTAA").

1.2 If domicile or habitual residence is relevant, how is it defined for taxation purposes?

Domicile or habitual residence is not defined in the Income Tax Act, 1961 ("ITA").