1. The applicant Mrs.Smita Anand is an Indian citizen and a person of Indian origin. She was working with Hewitt Associates(India) Private Limited from April, 2002 till September, 2007. On September 22, 2007, the applicant left India for the purpose of employment with Hewitt Consulting (Shanghai) Company Limited, which is a company incorporated in China. The applicant's employment with Hewitt (Shanghai) commenced on October 1, 2007. During her employment in China, she visited India and her stay in India in a particular year never exceeded 182 days. She returned to India on February 12, 2011 after resigning from her employment in China with effect from January 31, 2011. During the financial year 2010-11 which is the relevant year in this application, her total stay in India was 119 days. The applicant continues to enjoy status of non-resident as per domestic tax laws of India during the financial year 2010-11.

2. During the financial year 2010-11 relevant for assessment year 2011-12, the applicant realized proceeds from exercise of ESOPs and RSUs which were awarded to her by her employer in China, vested and exercised by her during the tenure of her employment with Hewitt China. The entire grant, vesting the exercise of the ESOPs and RSUs happened during the course of employment with Hewitt China. The proceeds in US Dollars upon exercise of ESOPs & RSU's was credited in applicant's name to her individual account with Morgan Stanley Smith Berne US from where the money was remitted to her Indian savings account after conversion into Indian rupees, during the financial year 2010-11 and before returning to India on 12th February, 2011.

3. Presenting the above facts, the applicant seeks ruling of this Authority on the following questions:—

1. Whether Ms. Smita Anand (hereinafter referred to as the "Applicant"), a non-resident Individual as per the provisions of the Income-tax Act, 1961 ("the Act"), is taxable in India in respect of amount of proceeds received in US and subsequently remitted into her Indian savings bank account in the FY 2010-11, upon exercise of following options / stocks which were granted to the applicant by her employer in China and which were vested as well as exercised by her during the tenure of her employment with Hewitt China:

(i) Historic Restricted Stock Units ('RSU's) awarded under an Employees Stock Incentive Scheme by her employer Hewitt Consulting (Shanghai) Co. Ltd (hereafter referred to as "Hewitt, China"); and

(ii) Converted stock options of AON Corporation awarded in lieu of historic stock options of Hewitt (hereinafter referred to as ' ESOP'), as a result of global merger of Hewitt with AON Corporation.

4. The application was admitted under section 245R(2) and while admitting the application the Authority left the question as to whether the applicant is a resident or a non-resident, to be considered while deciding the application under section 245R(4).

5. It was submitted that the applicant's stay in India for the financial year 2010-11 being less than 182 days and the applicant being on employment in China, her status continues to be non-resident during the financial year 2010-11 in terms of Explanation (a) to section 6 of the Income-tax Act, 1961 (hereinafter referred to as the Act). The applicant has not returned to India with the intention to permanently stay or settle in India but on a visit to meet her family and friends. The residential house property owned by the applicant (jointly with her husband) has been let out till June, 2011 and if the applicant's intention would have been to primarily reside in India, the applicant would have requested the tenants of such property to vacate the premises, close to the period of arrival to India. The applicant has been travelling to different locations for holiday and to meet with family and friends and relatives or at the hotels after her return from China. The applicant's alien employment permit was also valid till March 31, 2012 and she could return t