Mr. Kunal stayed in India for 250 days during the preceding financial year. In May of the current financial year he left India to take up employment in Dubai. His residential status under section 2(v) of FEMA from the date of his departure is:

Correct answer: D) Person resident outside India, as a person who goes out of India for taking up employment outside India is excluded

Explanation

Under section 2(v)(i), a person residing in India for more than 182 days in the preceding financial year is resident, but this excludes a person who has gone out of India for or on taking up employment outside India. The exclusion applies from the time he leaves. So Mr. Kunal becomes a person resident outside India from his departure, even though he stayed 250 days in the preceding year.