Residential Status – NRI or Resident? & NRI Taxation

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• Dear sir i am a marine engineer and i completed my NRI status financial year 2015-16 of 181 days . if i go to sri lanka and complete 3 days before 2016 March, I am eligible for NRI status and be exempted from tax paying

• Hi SR,

  I am living out of India since Feb 2013 and have earned some interest in NRO bank accounts now. In my case it comes out to be a refund from Indian Tax Department. Hoever my PAN is still has Resident status. So in order to claim the refund from the IT deptt do I need to get my PAN status as NRI first then apply for refund via filing.

  Or I can still file a refund without changinb my PAN status.

  Please guide me

  • Dear Tushar..Yes you have to get your Residential status updated and then file your ITR.

• Hi,

  I will be moving to US on a US payroll and getting US salary on 1 June 2015 and would be in US till 31 Dec 2016 (210 days). Then I will come back to India on 1 Jan 2017.

  Would I be treated as Tax Resident of India for Financial year 2016/2017 or not?

  I am bit confused on the statement that in case of an Indian citizen leaving the country for taking up an employment overseas, the clause of 60 days is replaced by 182 days.

  Please advise.

  • Dear Sundeep,
    Is it June 2016?
    I believe that your status would be Resident Indian as you are going to come back to India.
    Kindly use the calculator to assess your Residential status.

• i am NRE account holder for last 15 years but i have FDS in my name.In 2010 i came to india but my account still is NRE account account. i have still my FDS in NRE. but recently i came aboard in gulf. and after one year my FDS r geting matured. do i have to pay taxes on interest i earn on those FDS. its in SBI bank. they send me one letter from RBI called FACTCA . but right now i m not in USA. what does it mean.

  • Dear victor,
    If you had become Resident Indian, you should have updated your bankers about your Residential Status.
    Are you an NRI or RI now?
    Kindly read about : FATCA Compliance requirements..

• SIR I AM WORKING IN SAUDI I HAVE ROTATION JOB 35IN SAUDI AND 35 DAYS OFF IN INDIA
  I NEED TO PAY TEX IN INDIA

  • SIR I AM PAYING TEX EVERY MONTH IN SAUDI. STILL I HAVE PAY IN INDIA .AND I AM STAYING LESS THEN 180 DAYS OUT OF COUNTRY

    • Dear Deepak,
      If you are an NRI, I believe that there is no need to pay taxes in India on the income earned in Saudi.
      However, the income earned (salary + other sources of income) in India is taxable here.

• I was working in Middle East in last two FY but came back to India on 17 th Aug 2015 to join the company in india So will my income earned from 01 st Apr 2015 to 17Aug2015 in Dubai , be taxable in india?
  There is no income Tax in Dubai.
  what is the solution to avoid tax on foreign income if it is taxable in india. In between 17 Aug 2015 and till today , I have travelled to other countries on business visa of company ,where i am working in india, for 30 days. Will more business visit help to save tax? As of now I have completed 165 day out of india.

  Please help urgently so that I can arrange business visit if it is required to complete the 185 days out of india for FY 2015-16

  • sorry not 165 days it is 163 day becuase day of departure and arrival is part of 182 day rule.
    and additional info while working in Dubai, i came to india from 11th Jun 2015 to 16Jun 2015....i think that will also be considered as in india as per 182 days rule.

    Please help.

    • Dear Arvind,
      Kindly note that even if you try to maintain the NRI status for FY 2015-16, any income received in India during the FY will be taxable in India.
      I believe that you need not worry about the income you received in Dubai in FY 2015-16.

      • Will Dubai income not taxable in india for FY 2015-16 even if i stay more than 182 days?

        • Dear Arvind,
          Yes if you stay for more than 182 days and your status is Resident Indian then you need to file both Indian + Dubai income in your ITR.

• Dear sir, i completed 169 days this year for NR E status. What can i do to complete 183 days before financial yer.

  • Dear Narendra..I have replied to your email. Kindly check it.

• Dear Sir ,
  I am working in Hongkong , but in this financial year ( 2015-16 ) not able to complete the min.requirment of 182 days .

  In such case my income in Hong Kong will be taxable in India ?

  please comment.

  • Dear prashant..You may kindly first check if you are an NRI or not by using the calculator (key in values for Previous Financial Years too).

    • Hi

      Thanks for your feedback.
      actually I moved to HK in November 2015 ,hence I will not able to complete my stay of 180 days till 31st March 2016.

      In such case my income in HK ..will it be taxable ,

      if I send this money to India through HK bank to Indian Bank a/c? Then will it be taxable in India ?

      Please comments

      Thanks

      • Dear Prashant..If you were in India prior to Nov 2015, then your residential status can be 'Resident Indian' for FY 2015-16. In such a scenario, it will be taxable in India. Are you paying any taxes in HK on the income earned?

        • I get the salary in HKD only

          I will pay my tax end of the year in Hong Kong.

          In such case it will b taxable in India.

          Thanks
          Prashant

        • Dear Prashant..In case if tax gets deducted in HK, you may not be liable to pay taxes again in India.
          There is something called Double Taxation Avoidance Agreement (DTAA), kindly check if India & HK are part of DDTA, if so you can submit the tax paid proofs in India (to tax assessing officer) that you have already paid the taxes and do not require to pay one more time in India.
          You may take help of a CA.

          (I believe that both the countries have signed the DDTA).

        • Thanks a lot for your guidance
          Regards
          Prashant

• Hi Sreekanth,

  Very nice & informative to read your blogs and your replies.
  I would like to know if a person is employed abroad and he/she discharges his employment duties onboard a foreign flag ship, all the source of income is coming from the foreign employer into the NRE account in India, will the person be still considered as NRI even if he fails to make 183 days abroad.
  For the sake of argument if he stayed abroad for only 160 days in a FY year will he has to pay tax in India for the income earned through his employment overseas?

  • Dear Srikanth,
    I believe that in this scenario the individual will be considered as NRI for taxation purposes.
    Are you paying any taxes in abroad?
    You may kindly go through this article..click here.

    • Hi Sreekanth

      Thank you for the article. Most of the time we are signing off the country and join the ship and work onboard for 5 weeks (oil exploration surveys). The employer says if they have to pay taxes they will pay on our behalf in the country of assignment. Except in developed countries like Norway, USA, etc. the company has to pay taxes on behalf of the employee. Many times there is no need to pay taxes as we are working offshore.

      • Dear Srikanth.. Yes even I too believe the same.

• Thanks for informative article.
  My residential status for FY 15-16 is NRI, but I have stayed in India for 5 months.
  Few queries if you can help-
  1) The 80C deduction is available fully or in proportion to my stay in India?
  2) I have a house and pay EMI for it. Will only 5 month's EMI be considered for the 80C exemption? Or the EMI which I paid during my stay abroad will also be considered for exemption?

  • Dear Amit,
    1 - Fully (up to Rs 1.5 Lakh)
    2 - Full (however normal aggregate limits apply)