What did the ITAT decide in Binny Bansal’s case?

The Bengaluru bench held him resident in FY20. As a result, India could tax the Flipkart share-sale gains, and treaty benefits were denied. The case signals tighter scrutiny of residency claims, with authorities weighing day count plus real personal and economic ties, rather than relying only on travel calendars or declarations.

How do India’s tax residency rules work?

Residency generally depends on days spent in India, plus a look-back across prior years. From FY20, certain visiting Indian citizens with higher Indian income face a 120-day trigger. Authorities also review where permanent home, family, and key interests lie. Clear documents and consistent behaviour are essential during assessments.

Does the India-Singapore DTAA remove India’s right to tax share gains?

Not automatically. The treaty first requires establishing residency. If an individual is resident in India for the relevant year, India can tax gains from Indian shares, subject to specific provisions and limitation-of-benefits tests. The Binny Bansal tax ruling shows that weak residency claims can block access to treaty relief.

What should founders moving abroad do before an exit?

Plan at least a year in advance. Build overseas substance with housing, family relocation, bank accounts, and decision-making records. Track day counts with buffers, test treaty tie-breakers, and model tax outcomes under both residency cases. Formalise roles and agreements before any sale, and consider professional opinions or advance rulings.

Global Market Insights

January 12: ITAT Rejects Binny Bansal’s Non-Resident Tax Status

ByHuzaifa Zahoor January 12, 2026January 12, 2026

On January 12, the Binny Bansal tax ruling from the Bengaluru bench of the Income Tax Appellate Tribunal (ITAT) held him resident in FY20, denying treaty relief on Flipkart share-sale gains. The decision tightens focus on India-Singapore DTAA use and tax residency rules for founders, HNIs, and cross-border investors. We explain the ITAT Bengaluru order, outline residency tie-breakers, and list practical steps Indian investors should consider before a relocation or exit to avoid costly surprises and disputes.