How to Track Your Days in India for Tax Status

Residential status is pivotal in determining tax liability and must be backed by records

- Ashish Karundia

Renowned entrepreneur M. Mahadevan, popularly known as 'Hot Breads Mahadevan' for his international bakery and restaurant chain, has run into tax trouble back home.

A recent Income Tax Appellate Tribunal (ITAT) ruling declared Mahadevan a tax resident of India for financial years 2012-13, 2013-14, and 2018-19, thereby making his global income taxable in India—despite his claim of being a non-resident.

Mahadevan, who operates restaurants and bakeries in India and abroad, declared himself a non-resident in his income tax filings for these years. He based this status on his interpretation of passport stamps, asserting that he had stayed less than 182 days in India in each relevant year. As a non-resident, he only paid tax on Indian-sourced income, leaving his overseas earnings out of the tax net.

However, a review by the tax department—using passport records, visa copies, and data from the Foreigner Regional Registration Office (FRRO)—suggested otherwise. The officer concluded that Mahadevan exceeded the 182-day threshold in FY13 and FY14, and also met the 60-day-plus-365-days condition for FY19, thereby qualifying him as a tax resident under India's Income-tax Act, 1961 (ITA).