Resident or NRI for ITR

Q & A Forum › Category: Tax Planning › Resident or NRI for ITR

rakesh2468 asked 8 years ago

Dear Sreekanth, I left India on 10th April 2016 to USA to join an organization for employment purpose(before 10th April 2016, I was in India). Now planning to return back to India on 21st DEC 2017 to join a new organization from Jan 2018. I understand that for FY 2016-2017, I am an NRI. But for FY 2017-2018, I am bit confused if I will be treated as NRI or Resident Indian. Will the following exception clause applicable to me for FY year 2017-2018? 1. "Did you leave India for permanent employment in abroad?" 2. "Are you a person of Indian Origin visiting India?" If any of the above clauses are applicable to me then according to your post "Residential Status – Calculator", 60 days presence in India is replaced with 182 days to qualify for Resident Indian. Hence, I will be treated as NRI and don't need to add USA income while filing tax return in India. Is my understanding correct? Please confirm for FY 2017-2018, will I be treated as NRI or Resident Indian? Your Help is highly appreciated!

1 Answers

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Sreekanth Staff answered 8 years ago

Hi, First condition is - Are you going to stay in India for >= 182 days in for FY 2017-18 - As per your data , answer is NO. Second condition - Did you as a resident of India (being Indian citizen) left India for taking up employment , answer is YES. So, I believe that your Residential Status would be NRI for FY 2017-18 / AY 2018-19. You may kindly cross-verify this with any CA who deals with NRI taxation. Related article : https://www.relakhs.com/double-taxation-avoidance-agreement/

rakesh2468 replied 8 years ago

Hi Sreekanth,
Thanks for the response. I am bit confused here as I left India for permanent employment in FY 2016-17 and I am returning back India in FY 2017-18 to join an organization in India. Is the second condition still holds true for FY 2017-2018? Please confirm, as this condition will decide my status.

Sreekanth Staff replied 8 years ago

If the answer is YES for the second condition for FY 2016-17, then it holds good even for FY 2017-18.

rakesh2468 replied 8 years ago

Hi Sreekanth,

Thanks for the response. I am a bit confused here as I left India for permanent employment in FY 2016-17.
I am returning back India to join an organization in India in FY 2017-18. The second condition still holds true for FY 2017-18?
Please confirm as it will decide status for FY 2017-18.