The Government of India has formalized air bubble arrangements with 16 countries and is in discussion with others for similar arrangements. Besides countries like USA, Canada, France and Germany, the list now includes countries like Oman and Bhutan with whom India has formalized Air Bubble Pact.
Air Bubble agreement is a bilateral air corridor being established between various countries to ease travel restrictions amidst travel ban imposed by various countries due to coronavirus. Despite the ban, India was among the first few nations to start repatriation drive as early as May to bring back stranded Indians. Soon after, Air Bubbles were established to further ease the travel.
As the government is easing the lockdown further to open up the economy, more and more people are flying in and out of the country for all sorts of purposes, right from business travel to education travel and even for tourist activities.
In Vande Bharat Mission announced earlier by the Indian Government, one has to register their name with the Indian Embassy in order to fly out of a specific country. Under Air Bubble arrangement, flyers can travel freely without any registration.
In case of NRIs, for maintaining their status as a non-resident or not-ordinarily resident in India, the CBDT issued a circular on 08.05.2020 to provide relaxation, that for the purpose of determining the residential status under section 6 of the Act during the FY 2019-20 in respect of an individual who has come to India on a visit before 22.03.2020 and who was not able to leave India before 31.03.2020, the period of stay from 22.03.2020 to 31.03.2020 shall not be taken into account. However, no further clarification/relaxation have been issued by CBDT for the current Financial Year 2020-21.
Due to Covid-19 restrictions on air travel, NRI’s may end up spending more than 182 days and may accordingly legally qualify as a resident as per section 6 of the Act. It is expected that the CBDT will issue a circular similar to that issued in May 2020 for the purpose of providing relief in the determination of residential status for FY 2020-21 as well.
One needs to remain updated on the air travel related measures and residential stay related clarifications that the Government of India is announcing from time to time.
