Residential Status – NRI or Resident? & NRI Taxation

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• We are buying flat from a seller who in our case is carrying USA Passport
  He is claiming to have spent more than 365 days in india in last four years
  and this year residing more than 182 days in india

  He is sharing his last two years income tax return with resident status
  and his pan card
  He is saying he should be treated as an resident indian and is not covered under section 195
  How I can safeguard myself
  Sir please revert as it is very important for us as we have already given the biana

  • Dear navdeep,
    Suggest you to get this deal done through a lawyer or a Chartered Accountant.

• Hi Sreekanth,

  In FY(2014-15), I stayed in India for 181 days. I worked for an Middle East company and the salary was received in Middle east only but during my stay outside which was 184 days , I visited India on personal visit to meet my family for 10 days though that time no salary income was earned in India. I need to know as I was in India for less than 182 days then should I file my residential status as NRI or Resident while I file ITR.

  • Dear Vivek,
    If you have not stayed in India for atleast 182 days during the Financial year 2014-15, use the calculator that has been provided in the article by keying in the other data and you may check for yourself about the Residential Status.

• Hi Sreekanth, would you happen to know which section of ITR2 should an ROR use for entering information of US-based IRA (Individual Retirement Arrangement)?

  • Dear Duseja..I believe it can be shown under 'Schedule FA'.

• Hi Sreekanth,
  I am NRI with non-resident status. Whereas my wife is resident.
  We have a couple of joint savings account in USA. Source of income was all mine in those joint accounts.
  Does my wife need to disclose these joint accounts in her ITR-2?
  Thank you.

  • Dear SS..I believe that it is not required.

• Dear Shreekanth,

  I returned back to India in Feb 2014. My Current status is RONR. I was holding some FD's As NRE FD's. These Are Maturing in FY 2014-2015. From various comments above I consider that The interest I received on these FD'S is tax exempt. However if any FD is opened after return to India the Interest on these FD'S would be taxable. All FD's are Rupee account. Please confirm my understanding.

  Thank You,

  • Dear Jagdish..Yes you are correct. Also, you need to update your bankers about your current Residential status.

    • Thank You,

      Jagdish

• First of all a very good blog, Sreekanth.
  I came to India from US in mid Oct 2014 and my status is Non-resident for Indian fiscal year 2014-2015.
  My wife is resident since last 2 years.
  Since in India, we should be filing Individual tax returns, do both of us need to show the US bank accounts in ITR2s.
  We have a couple of bank joint accounts, joint brokerage account and also individual tax saving accounts (401k/IRA).
  Do we both need to show joint accounts also?

  Also for taxation purpose, do I need to show my non-resident overseas salary as well?
  How about interest and capital gains from Bank/Brokerage accounts? Who need to show what in ITR2 and also income for taxes.
  Sorry for a long question. Your comments are appreciated. Thanks.

  • Dear SS,
    If you are filing as an NRI, no need to show foreign income or overseas salary. you have to show the income that is received or accrued in India.
    Whereas, you spouse being a Resident Indian, has to show foreign income (if any).

• Hi Sree,
  I came to US on 1st Dec 2014. So by 31st March 2015, I didnt complete 182 days. As of today I attend the status of NRI. So should I be filing as NRI or Resident?

  Do you have any idea about Schedule FA from ITR2?
  Or any link which can enlighten about Interest Accured/Interest Taxable/Schedule where offered/Item number of schedule.

  Thanks,
  Abhi.

  • Dear Abhijeet,
    For how many days were you in India between April 1, 2014 to Mar 2015?

• Hello SreeKanth,

  I am an NRI for FY 2014-15. I don't have any income above exemption limit in India. I have one house in India and own house in Foreign country. I am confused which ITR form to fill. If ITR-2, do I need to declare my Foreign Bank accounts, Foreign property and Foreign Salary income.

  Appreciate if you can help me in this regard?

  • Dear Abhipray,
    I believe that you can file ITR 1.
    The said rules are applicable for Resident Indians.

• Hi Sreekanth,
  I came across your article researching NRI taxation for 2015. I saw in the new ITR 2 form there is a section for providing details about foreign bank accounts and assets. I and my spouse are both green card holders and are both working in the US. We qualify as NRIs and even though our taxable income is well below the exemption limit, we want to file income tax return in India for continuity. My question is - do I need to declare all my assets in the US (bank accounts, property, salary details, US tax returns) in the new ITR 2 form?

  • Dear A,
    It is not required, applicable for Resident Indians only.

    • Thanks for the quick reply Sreekanth.

• Hi Sreekanth,

  Thanks for the informative article.

  I've to file returns as NRI this year. I had salary income in India in the month of April, May and am employed in US after that.
  1. Do I have to fill up schedule FSI in ITR-2?
  2. Do I have to show the US salary as salary in schedule salary of ITR2?

  Kindly clarify.

  Thanks & regards,
  Seetha.

  • Dear Seethalakshmi,
    Only Resident Indians have to disclose their foreign income in ITRs.

    • Thank you.