NRI Status : Implication of "stay in India

POSTED BY Deepak Gupta ON August 31, 2012 4:30 pm COMMENTS (11)

Am likely to go to E. Africa (Ethiopia) for a 2 years contract around Sep month end; likely saving shall be 2000 USD (Tax Free) per month; FY 2012-13 : Taxable income in India – NIL; do I have to rush out of country on/before 27th Sep 2012, to avail NRI staus condition <182 days stay in India in the FY; am not in any hurry to repatriate money to India, given preference shall like to keep it in USD [say FCNR(B) A/C, where it continues to grow in USD & tomorrow I may use it for children Higher education abroad – hope I’m right?]; Forum – plz advise.

11 replies on this article “NRI Status : Implication of "stay in India”

  1. Deepak Gupta says:

    Thanks Ashal.
    1) In my trailing reply; FOR: Ashal, READ: Investmenthelp.
    2) Request as an originator; can I delete/edit my starting question, way back on 01st Sep 2012 (or before) – titled, “DONE SOME RESEARCH ON MY OWN; HERE’S PLZ…..NON – RESIDENT STATUS UNDER THE INCOME TAX / WEALTH TAX ACT” – rgds

  2. ashalanshu says:

    Dear Deepak, Yes, that’s why I said MAY fall in RNOR category depending upon the exact situation of an individual.

    thanks

    Ashal

  3. Deepak Gupta says:

    Ashal you shall be an RNOR if been an NRI for 9 out of last 10 years; or if spent less than 729 days in the last 7 years.

  4. ashalanshu says:

    Dear Investmenthelp, the person in question may fall in RNOR category for the situation you are describing. In this case, Indian income ‘ll be taxable. Global income ‘ll remain non taxable in India.

    thanks

    Ashal

  5. Investmenthelp says:

    What happens if a person goes back to India after a long term assignment in US and lives there for less than 180 days but more than 60 days. He has stayed in India for more than 365 days in previous 4 years and have paid tax in all 4 previous years.

  6. Advait says:

    What happens if you are holding shares and mutual funds in India and move to other country for an year or two?

  7. Deepak Gupta says:

    Thanks Ashal, plz another dimension…..how does being NRI or not in a FY (say 2012-13) shall effect part tax free USD salary repatriation to India thro’ say NRO or FCNR a/c.

    1. Dear Deepak, the global income ‘ll taxable if you are not NRI in a FY. For NRI’s only Indian Income if any ‘ll be taxable. Keeping money in NRE or nRO or FCNR accounts ‘ll be your choice.

      Thanks

      Ashal

  8. Deepak Gupta says:

    DONE SOME RESEARCH ON MY OWN; HERE’S PLZ…..

    NON – RESIDENT STATUS UNDER THE INCOME TAX / WEALTH TAX ACT
    The term non-resident is negatively defined under section 6 of the Income-tax Act. An individual who is not a resident under the Income-tax Act is a non-resident (generally, termed NRI). Thus, one should know the definition of a resident and if he is not a resident then he is a non-resident.
    The status of a person as a resident or non-resident depends on his period of stay in India. The period of stay is counted in number of days for each financial year beginning from 1st April to 31st March (known as previous year under the Income-tax Act). The definition is explained in simple terms as under.
    If an individual who satisfies understated both the conditions of section 6 of the Income-tax Act, then he becomes a Non-Resident.

    Condition Status

    1. He/she is not in India for 182 days or more >>>If yes, then he/she is a non-resident
    during the relevant previous year.

    2. He is not in India for 60 days or more >>> If yes, then he/she is a non-resident
    during the previous year and he is not in
    India for 365 days or more during the
    4 years prior to the previous year.

    1. Dear Deepak, that’s why in your case, you should focus on that 182 day limit of stay in India to be eligible for NRI status.

      Thanks

      Ashal

  9. Dear Deepak, To avail NRI status, yes your period of status should be less than 182 days in India.

    Thanks

    Ashal

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