Mr. Gagan was employed as a premium baker in Del Bakers., a public limited company in Gurugram, India during the financial year 2024-25. He had…

CA Intermediate · Corporate and Other Laws · MTP · January 2026
Mr. Gagan was employed as a premium baker in Del Bakers., a public limited company in Gurugram, India during the financial year 2024-25. He had efficiently provided his services for 183 days during the above said period. On 01.04.2025, Mr. Harish, the Human Resource Manager of Jeff Bakers Ltd., Rome (a foreign country) offered him a better employment opportunity in the company. On 02.04.2025, Mr. Gagan left India for taking up employment as a production controller at Jeff Bakers Ltd. in Rome. On 30.04.2025 he flew back to India for a 10 day family function in Garwhal, India. In light of the provisions of the Foreign Exchange Management Act, 1999, elucidate, the residential status of Mr. Gagan, on his return for attending the family function on 30.04.2025.

Suggested Answer and Working Notes:

According to section 2 (v) of the Foreign Exchange Management Act, 1999, “Person resident in India" means a person residing in India for more than 182 days during the course of the preceding financial year but does not include a person who has gone out of India or who stays outside India, for or on taking up employment besides with the other specified purposes, outside India. In the given question, Mr. Gagan will be treated as a person resident outside from 2.4.2025 till the time he works in Jeff Bakers Ltd. in Rome, as he has gone out of India for or on taking up employment outside India. His return to India for 10 days to attend a family function, will not alter his residential status.

Topics: The Foreign Exchange Management Act, 1999

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