Residential Status – NRI or Resident? & NRI Taxation

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• hey sreekanth, i have business that is setup in singapore. i will be moving to india soon. As rnor, will my business in singapore or dividends that i withdraw from the company be taxable in india. It is a digital marketing company so all the income is online. i am worried about the place of control of the business

  • Dear Nehal,
    I believe that ff the business entity is registered in Singapore, and income accruing or arising outside India, is not taxable in India. I believe local (SG) taxes are applicable. Kindly check on this with a CA too.

• Dear Sir,

  Following is my foreign trip details -

  Departure from India - 24-May-2015

  Current Location - Still onsite(Outside India).

  I went on small personal trip to India for 10 days on vacation in Dec -2015.

  Please tell me the residential status for F.Y. 2016-17. Is vacation days will be considered during calculating residential status or not? during this time we got salary only from foreign branch.

  Thanks and Regards
  Vineet

  • Dear Vineet..Suggest you to kindly use the calculator provided in the article.

• Dear Sri,

  I am PIO and came back to India in FY 2003 - 2004. NR in that financial year; NOR for 2004-2005 & 2005-2006 and thereafter Resident for tax purposes. In FY 2015 - 2016, I was out of India for 191 days. What will be my residential status in FY 2015 - 2016, given I am a PIO. Best regards

  • Dear Samtani..I am not sure about your case. Kindly consult a Chartered Accountant.

• Dear sir,

  I have confusion about my NRI status.

  Recently, i have heard that NRI not eligible to PPF account,

  I left India 19 Feb. 14 and back to India for 20 day on 01 Dec 14, During this visit i had open New PPF acount on 17 Dec 14.

  During 17 Dec 14, what was my NRI status, and PPF Account legal or not

  Thank you,

  Rikes hPatel.

  • Dear Rikesh,
    A resident-turned-NRI is allowed to invest in the PPF account from his/her non-resident ordinary (NRO) or non-resident external (NRE) account till maturity.
    He/she cant extend the tenure after the mandatory 15 years’ lock-in period.

• Hello Sir,

  I am currently onsite in Germany. But it us scheduled that I will be joining in India 3rd OCT 2016. But due to family reasons I had travel short trips to India, and back to Germany. In this case will be taxed in India or not?

  Thabks in advance.

  • Dear Raviraj,
    It depends on your residential status for this Financial Year. Kindly use the calculator provided in the article and check for yourself.

• I am working out of India since July 2005 and have not stayed in India for more than two months in any of the financial years.

  I am likely to return to India in August 2016. Will I have to income tax in the current FY2016-17 when I return in August?

  If yes, then how can I save the tax?

  • Dear Chandra,
    If your residential status is NRI for FY 2016-17 then you may not be required to file taxes.
    Do you have any income from the sources which are in India?
    Read:
    List of income tax deductions for FY 206-17.

    • Hello Shreekant,

      I wanted to ask about tax on income earned while working abroad from April to August 2016. I have been working here since July 2005, but may have to return now. There is no income tax here. I don't have significant income in India.

      If I have to pay tax on foreign income, then are there any other concessions? Standard of living here is much higher here. So do I get more standard deduction than resident Indians?

      Thanks and regards,
      -Shekhar.

      • Dear Chandra,
        If your residential status remains NRI for this FY and you have negligible income in India (below basic exemption limit) then you may not be required to pay any taxes in India.
        I believe that there is no such provision wherein income tax deductions are linked to standard of living/cost of living.

        • Hello Sreekanth,

          As I said I am likely to return in August and unlikely to get a foreign job again in near future. Since I am NRI for almost 11 years now, will I remain NRI even if I return in August and don't go back? Will I be RNOR and as RNOR will I have to pay tax on foreign income earned from April to August?

          Thanks and regards,
          -Chandra

• Dear Shreekanth,
  Please help me know my Residential Status with following data. I stayed following days in India on vacation (with no income generated in India)
  FY2011-12: 216 (Left India for employment in USA on 2 Nov 2011)
  FY2012-13: 0 days
  FY2013-14: 83 days
  FY2014-15: 0 days
  FY2015-16:40 days

  I will be returning back to India on 1 Oct 2016. My payroll will start in India on 1 Oct 2016. From 1 April 2016 to 30 sep 2016, I will be staying 183 days outside India (USA).
  1. Will that retain my NRI status to file taxes for FY-2016-17. I will be paying my taxes in the foreign country (USA).
  2. If I travel for 10 days on vacation to India before between 1 April-1 Oct 2016, will I have to pay taxes for all the income earned in USA from 1April 2016-30 Sep 2016? Is vacation period with no income generated in India considered as part of 182 days? Will have file taxes as Resident in this case?

  Technically I have stayed 315 days in last 5 Financial years, will I be able to retain the NRI status for filing taxes in India for 2016-17. I will have to file taxes for income generated from 1 Oct onwards, but will I have to pay taxes for income generated in USA prior to coming to India?

  Much appreciate your help to clear my confusion.

  Thanks

  • Dear Rupesh,
    1 - As of now your Residential status as pr last few years data is NRI.
    2 - In case if you stay for 182 days (greater than or equal to 182) in India for in FY 2016-17 then you will become Resident Indian. So, it may all depend on the num of days that you are going to stay in India in this FY.
    3 - If you become Resident Indian then you have to pay taxes on all the income earned by you. But if you pay taxes in USA you can submit those papers to Assessing officer in India to avoid paying the taxes twice (kindly refer to Double Taxation Treaty).
    Suggest you to consult a Chartered Accountant and file your taxes for FY 2016-17.

• i m having NRE accounts but from last 5 years i couldn't maintain my 182 days in each year as required by NRE status. i m working on ship getting salary in dollar but never work in india even not recieved indian money in my account.

  do i need to worry about Income tax related / submitting some thing to Income tax deptt.

  do i need to fill some Income tax returns/any thing else with Income tax.

  • Dear pratap ..Do you mean to say that your Residential status has been Resident Indian for the last 5 years and you have not filed Income Tax Return?

• dear sir,i have opened NRE account December 2014 and i am sending amount from abudhabi to India in my NRE account.now i have to move from abudhabi to India permanent and i got mail from bank about submit for KYC proof ,menace bank asking new visa proof for KYC but my visa till not expired up to june29 2016 have a veiled.now i dint want renew my visa, so what will happen my FD and other amount when my account will be transfer to resident account.please advise me. any Interest tax on my running FD and what about my transferred amount from abudhabi to india on NRE income it will be taxable? because i want continue invest in same account .please

  • Dear manthan,
    I believe that till the time your Residential Status is NRI, you can continue getting tax-free interest income on NRE account. But as soon as your status changes, you need to inform to your banker and convert it normal savings bank account.

• DEAR
  MY WIFE IS ALSO NRI , SHE HAVING NRO FD INCOME THIS YEAR BUT IF NEXT YEAR SHE DONT HAVE NRO FD INCOME SO SHE NEED TO FILE ITR OR NOT.

  AND PLEASE TELL ME WE CAN FILE ITR ONLINE INDEPENDENTLY OR ITS NECESSARY THR. CHARTERED ACCOUNTANT BEACUSE CHARTERED ACCOUNTANT IS CHARGING ME INR 3500/- PER YEAR PER PERSON I THINK THIS IS HIGH PRICE FOR ONE YEAR.

  PLEASE REPLY ME ON EMAIL ALSO.
  THANKS N REGARDS,

  • Dear NEERAJ..Kindly refer to our chat on FB.