Residential status would be determined based on your physical presence in India during the given financial year (FY) and the preceding 10 FYs. As per the basic residency test, you would qualify as a resident if 1) your physical presence in India during the given FY is 182 days or more or 2) if your physical presence in India during the given FY is 60 days or more along with 365 days or more in the preceding four FYs. The period of 60 days is substituted by 182 days a) for a citizen of India who leaves India in the given FY for the purpose of employment outside India or as a member of the crew of an Indian ship b) for a citizen of India or a person of Indian origin, who being outside India, comes on a visit to India during the relevant FY. In case none of the basic conditions are satisfied, you would qualify as a non-resident (NR).
Arrival and departure stamps on passport can prove residency
Assuming, you being an Indian citizen have left India in the given FY, as a member of the crew of an Indian ship, you shall qualify as NR of India if you were physically present in India for less than 182 days in the FY. As the residency test is on the basis of physical presence, physical presence outside India (as evidenced by the arrival and departure stamps on the passport), on vacation or for any other purpose, should be counted as days spent outside India. As an NR, only income sourced from India or income received directly in India would be taxable in a given FY.
My father who is 80 has Parkinson’s disease (advance stage). He is undergoing treatment and is totally dependant on me. Due to the advanced stage, I would like to hire a person who would help him in moving around and a physiotherapist. I want to know if I can claim deduction on these expenses?
A deduction is available under Section 80DDB of the Income-tax Act to a resident taxpayer towards expenses incurred on medical treatment of specified ailments (specifically including Parkinson’s disease), for a parent, wholly or mainly dependant on the taxpayer, for support and maintenance. In case the parent is 80 years, he/ she would qualify as very senior citizen, and the taxpayer can claim a deduction of actual expenditure incurred on the medical treatment, subject to a cap of ₹80,000 per annum and other prescribed conditions. However, the said deduction specifies only expenditure towards medical treatment and does not specifically include nursing or similar expenses. Accordingly, while deduction towards expenses on medical treatment of your father should be available, deduction towards expenses paid to a person who would help your father in moving around and a physiotherapist may not qualify for deduction, unless based on a review of facts and documents, they can qualify as medical treatment. In any case you will need to obtain a prescription of such medical treatment from a prescribed neurologist. A deduction is available under Section 80DD to a resident taxpayer if he has incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant parent, with disability/severe disability, subject to specified conditions. Disability has been specifically defined in the Act. Deduction of ₹75,000 per annum and ₹1,25,000 per annum is available towards disability and severe disability, respectively.