PGopal
1
I am a NRI for last 7 Years planning to relocate to India. I would like to know what would be my tax liability for AY 2015-2016 under scenario (1): I return to India in June 2015 and scenario (2): I return after 30 Sept. 2015, on the following heads of income:
a. salary earned overseas during AY 2015-2016
b. Interest income on NRE FD for AY 2015-2016.
In scenario 1 I will be Resident but Not Ordinarily Resident and in Scenario 2 I will be NRI for AY 2015-2016.
Thank you and regards,
P G
If you come after Sept 2015, you would be non resident Indian and salaries earned overseas won't be taxable in India, and Interest earned on NRE FD would also be non taxable in India.
But in case of June return, you would have NOR status and thus income earned outside India won't be taxable in India. Immediately on return to India, NRIs should inform their bank to designate their accounts as domestic Resident accounts or transfer the balance in their NRE accounts to Resident Foreign Currency (RFC) accounts and thus interest income on it would become taxable in India.
