Pintoo resided in India during the Financial Year 2023-2024. He left India on 16th July 2024 for Switzerland for pursuing higher studies in…

Residential Status: 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 preceding financial year [Section 2 (v) (i) ]. However, it does not include a person who has gone out of India or who stays outside India for employment outside India or for any other purpose in such circumstances as would indicate his intention to stay outside India for an uncertain period. Generally, a student goes out of India for a certain period. In this case, Pintoo who resided in India during the financial year 2023-2024 left on 16th July 2024 for Switzerland for pursuing higher studies in Biotechnology for 2 years, he will be resident as he has gone to stay outside India for a ‘certain period'. RBI has however clarified in its AP circular no. 45 dated 8th December 2003, that students will be considered as non-residents. This is because usually students start working there to take care of their stay and cost of studies. Pintoo will be treated as person resident in India for Financial Year 2024-2025 till 16th July 2024 and from 17th July 2024, he will be considered as person resident outside India. However, during the Financial Year 2025-2026, Pintoo will be considered as person resident outside India as he left India on 16th July 2024. Foreign Exchange for studies abroad: According to Para I of Schedule III to Foreign Exchange Management (Current Account Transactions), Amendment Rule, 2015 dated 26th May, 2015, individuals can avail of foreign exchange facility for the studies abroad within the limit of USD 2,50,000 only. Any additional remittance in excess of the said limit shall require prior approval of the RBI. Further proviso to Para I of Schedule III states that individual may be allowed remittances (without seeking prior approval of the RBI) exceeding USD 2,50,000 based on the estimate received from the institution abroad. In this case the foreign exchange required is only USD 55,000 per academic year and hence approval of RBI is not required.