The Central Board of Direct Taxes (CBDT) was directed to decide on reliefs to be granted to Non-Resident Indians on payment of income-tax for the financial year 2020-21 in the wake of the Covid-19 pandemic within three weeks by the Supreme Court of India.

The Court also directed the petitioner, Gaurav Baid, a Dubai-based NRI who was assessed in 2019-20, to represent the CBDT within three days. Baid, who came to India on March 2020 for a visit, and was able to travel back after 182 days in India in 2020-21. The petitioner feared that his involuntary extended stay may result in him losing the non-resident status under the Income Tax Act, 1961, thereby exposing his global income to tax in India. The Home Ministry and the Civil Aviation Ministry had prohibited and suspended international air travel for most of FY2020-21. Making many NRIs extend their stay in India.

The Finance Ministry issued a clarification on May 8, 2020 for the FY 2019-20, on the aspects of residency under Section 6 of the Income Tax Act wherein various relaxations were provided to NRIs who could not travel back to their country of work/residence because of the lockdown. No such clarifications have been provided up till now.