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    Question

    Under Section 2(v) of FEMA, 1999, which of the following

    persons qualifies as a "Person Resident in India"?
    A A person who has been residing in India for more than 182 days during the current financial year Correct Answer Incorrect Answer
    B A person who has been residing in India for more than 182 days during the course of the preceding financial year Correct Answer Incorrect Answer
    C Any Indian citizen, irrespective of how many days they reside in India Correct Answer Incorrect Answer
    D A person residing in India for more than 120 days in the preceding financial year Correct Answer Incorrect Answer

    Solution

    Explanation:  Under  Section 2(v) of FEMA, 1999 , a "Person Resident in India" is defined as a person who was residing in India for  more than 182 days during the course of the preceding financial year . This is a critical distinction the threshold is calculated based on the  preceding  financial year, not the current one. This directly determines whether a person's foreign exchange transactions are governed as a resident or non-resident, affecting their rights under current account and capital account transactions. Note that companies registered or incorporated in India are also automatically treated as persons resident in India under FEMA, irrespective of the 182-day rule.

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