Excellent video on NRIs especially returning NRIs.... ive been following your videos as well as videos of other consultants particularly related to tax implications on returning NRIs.. .. Non of them could explain matters related to returning NRIs like the way you do and on top of that by bringing in Mr Sriram there's nothing more you can do. Wonderful listening to Mr Sriram...he has touched upon those areas where clarity was needed... Still there are many grey areas...hope he will clarify in part 2...eagerly waiting for part 2...thanks a lot
Sir I congratulate you for guiding NRI community.Your information is very valuable for us. I request you to create a video on NRI WITH OCI who are receiving pension from Central GOVERNMENT in INDIA .Thanking you once again.
They are taxable in India as well as country of your residence… however in resident country you can claim foreign tax credit of taxes paid in India to mitigate double taxation of same income in 2 countries
Can you also some time in future give advice on transfer of residence status from customs point of view. What goods you are entitled to bring in free of customs duties and what you cannot.
One question: As an OCI if i own shares in a foreign country and if I leave it in a foreign country without collecting any dividends etc but just for pure compounding, will I be taxed in India if and when I liquidate my shares at some point in time and want to transfer funds back to India ? Assuming that I would have been already taxed for capital gains in the foreign country when I liquidate those shares !
The rules were clearly mentioned. But regarding “rule two “to get qualified for RNOR, Should the person have completed minimum 7 years abroad? In my case, I was abroad for 5.8 years. Can someone help me on this?
Dear Sriram you are amazing. I lived for 35 years. Came to India in June 2019 with intension of going back and went back in Nov 2021. It was a covid time. As per your talk I am considered as RONR sub category of Resident. While RNOR status I went back. Is there any relaxation people got stranded in India?
Just came across this channel by and found it very helpful in regards to taxation issues as well as staying in India, just want to know if all this rules and laws are same to oci card holders too, or are the rules different to us. Thanks
Sure can you please do a segment for Indians with OCI status.? That is Indian holding foreign citizenship but elect to come back to India to stay on retirement or sabbatical.
@@sriramrao2514 maybe,but you see deafness in old age is common,and I am deaf, with available cure but I can read so I need this written reply,! Thanks.
Cannot clearly understand the aspect of 182 days in India. For example if a person has satisfied his NRI status during FY 2020-21 (completed more than 182 days abroad) and has returned to India during the month of Dec, 2020 and not gone abroad since will he be considered a Resident in India from Dec, 2020 or only from 1st April, 2021 (FY 2021-22)? Remember that he has already satisfied his NRI status for FY 2020-21. I hope my query is clear and hope to get your feedback.
Please understand one aspect clearly that you need not count how many no of days that you stayed abroad, that does not always give you correct result. Legally there is a significant difference/legal implication if the law understood or tried to implement wrongly than what has been provided and will not give correct result. As explained in the video, calculate the no of days stayed in India and check whether you are resident in India. If you are not a resident in India, then you will be NRI under Income Tax Act. The no of days calculation under Income Tax Act, is from April to March and not calendar year. If is also pertinent to note that, there is one more rule FEMA which also defined residential status. FEMA regulates opening, maintaining and closing of various types of bank accounts. Under FEMA there are only 2 status either a Person is resident in India (PRI) or person resident outside India (PROI). If one becomes PRI then he cannot maintain NRO/NRE/FCNR accounts. NRE/NRO/FCNR accounts must be closed/re-designated to resident accounts as soon as person comes back to India for permanent settlement or for exercising employment/business in India. Because on the date of arrival itself, such person would become a person resident in India as per FEMA. Hence, don't get confused between 2 separate enactments which governs and operates two different areas.
Very useful and informative video sir - but there is a small correction. ‘Stateless’ person talks about nationality/citizenship, it is different from someone who does not have tax residence in any country. In fact, I am currently in the latter category and would therefore come under RNOR status if I earned more than ₹15 lakh in India. But I am not stateless.
E.g. students in USA on F1 visa get five years exemption from Resident Alien status. In India if you are there for less than 60 days you would earlier be NRI. But now, if you are earning more than ₹15 lakh in India, you will be RNOR and not NRI.
I agree with you that when spoken in general, a stateless person is a person who is not a citizen/national of any country. But we are discussing provisions of Income Tax Act and residential status therein. Hence, we used the word ‘stateless’ only in the context of residential status under The Income Tax Act, 1961. Moreover, I would also like to bring to your kind notice that, the memorandum which explained insertion of deemed resident as per section 6(1A), also used the word ‘stateless’ in their explanation. Hence, request you to consider the word which we used as ‘stateless’, only in the context of The Income Tax Act and not in general. Thank you very much for bringing out such a minute observation.
Please make a video for seafarers going out of country for Case1: less than 184 days Will they enjoy RNOR status benefits Case2: equal or more than 184 days
Condition 4 @ 15:00 Applicable to citizen of India who is stateless 😂😂. It does not sound right. The speaker probably meant not stayed in any country for more than 180 days.
Dear Sirs, what status a mariner will have when he is with a foreign shipping company as well some time with Indian shipping company. Some time he is more than 185 days and some time not, may be 180 day in a financial year. He has NRI account, and what will he do with his resident account.
Regulations for maintenance of bank accounts are governed by FEMA... in this video Income Tax rules are discussed, hence do not apply this rule to verify which type of bank account to be maintained... watch a video on When should NRI's close NRE-NRO-FCNR accounts in this channel to get your answer....
Thanks a lot for excellent explanation by Mr. Shriram and Mr. Bhat cos u r nailing the exact queries that r in the mind. One quick query If I understood correctly, as I saw whole vid . The condition which applies that 9 out of 10 years if out of India , u can get RNOR status but this status would end if that nri/ foreign national completes his or her 10 years residing with in India ? Cos now the condition of staying 9 out of 10 years is not there ? Kindly clear the query ?
@@sriramrao2514 Thanks a lot for the reply . Does the above condition also applies to US citizen staying out of India for 20 years wil be oridinary resident once came back India with in 2 years? Or to be more specific in such case for how many years he/she can have RNOR status. Secondly will he/she has to pay tax on foreign assets or income earned from the foreign assets ?Kindly explain and thanks in advance.
After returning to india, can i keep my NRE account for 2 years on RNOR status or should i convert it to resident account after 6 months from return? Do we need to file tax returns in india or usa during this RNOR status and who taxes on NRE FD interest during RNOR status On RNOR status can we continue our NRE account for 2 years or not.
Suppose I am permanently coming back to India and got RONR status. Also I have closed my NRE/NRO Accounts. Now if I want to transfer/repatriate my foreign savings out of salary income to my indian Savings acc, will that principle amount be taxed in India?
I am 81 yr old male. I have been resident Indian for tax all these years.this year from April 9 2022 iam in USA.. I have applied green card. If I continue till 31march 2023 in USa. What is my tax status for filing IT Return for financial year 22-23
i worked abroad between July 2014 to Feb 2022 and retyrned to India permanently. Can i check if i am an RNOR and what document can i submit as proif of RNOR status to claim tax exemption on my NRE deposits.
taxation of interest from NRE deposits is not dependent on RNOR status. You need to determine residential status as per FEMA... you can watch another video in this channel on topic "when should NRO-NRE accounts to be closed by NRI" and be guided...
@@NiteshBV Its very subjective and depends on your residential status under Income Tax Act. Generally, it will not attract tax in India in the hands of NRI, but need to check every time thoroughly about its taxability in India.
In the case of Persons in merchant Navy sailing on foreign going vessels, will RNOR status will be applicable if they are earning 15lakhs in India as per condition 4 and for how long they can satisfy this condition. Since you told me only one of the four conditions is required to be fulfilled. So if a seafarer is unable to stay out of India for 184 days, he is still exempted to pay taxes on income earned outside India if he will be complying with only condition 4.
Your understanding is little bit incorrect... watch the video on Who is a NRI? in this channel... If you are an NRI as per normal provisions, only then 3rd and 4th conditions would kick in due to exception clause. But if you are already a Resident as per primary clause, then only 1st or 2nd condition will make you a RNOR, 3nd and 4th condition would not be applicable at all...
@Sriram Sir, As clarified by you earlier, once you return to India during your 2 Year of RNOR status, you have to convert your NRE and NRO Accounts into Resident Account as per FEMA requirements. Now, I have 2 Queries: (a).During these 2 Years of RNOR status after returning to India, will I need to pay Taxes on my NRE FD Interest in India that were booked long back during NRE Days and have still not matured? (After 2 Yrs of RNOR period, I understand fully well that every Interest earned will be taxable but was curious to know if FD Interest earned during this RNOR period if it would be Tax Free) (b).FCNR Time Deposits in India would still be accumulating some Yearly Interest during this RNOR period. Do we need to pay Tax on FCNR Interest generated Yearly? (You did mention that FCNR Deposits can be continued till it matures but at maturity will the Amount getting credited(Principal + Interest) now into your Resident Account be Tax Free?)
FEMA regulates opening, maintaining and closing of various types of bank accounts. Under FEMA there are only 2 status either a Person is resident in India (PRI) or person resident outside India (PROI). If one becomes PRI then he cannot maintain NRO/NRE/FCNR accounts. NRE/NRO/FCNR accounts must be closed/re-designated to resident accounts as soon as person comes back to India for permanent settlement or for exercising employment/business in India. Because on the date of arrival itself, such person would become a person resident in India as per FEMA. You can check it yourself, RBI’s master direction 5R… para 4.9 of ‘Part II - Opening, holding and maintaining accounts in India by a person resident outside India’ - therein www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10198 Taxation of NRE interest depends on one’s residential status under FEMA. If a person is resident outside India as per FEMA, the NRE interest will be exempt under Income Tax Act. FCNR interest is exempt in the hands of a person who is a non-resident or RNOR under Income Tax Act. Capital is fully exempt & Interest earned till you RNOR is also exempt. RNOR status is available only under Income Tax Act and not under FEMA. Under FEMA there are only 2 status either a Person is resident in India or person resident outside India.
@@sriramrao2514 Thanks Sriram Sir for your detailed clarification. If I understood you correctly for NRE & FCNR Accounts held in India, (a).During the 2 Year RNOR status period FCNR Interest will be exempt from Tax but after RNOR status is over start paying Taxes on FCNR Interest till maturity of FCNR Deposit gets credited back into your Savings Account . (b).For NRE FD Interests we will need to start paying Taxes during the 2 Years of RNOR period and beyond(i.e. moment you loose your NRE status start paying Taxes on NRE FD Interests).
Well Gentlemen both of you are outstanding and so precise on your educative sessions for NRI money clinic.Absolutely beyond word's for your time and dedication .Thanks so much from the bottom of our 💕.
Hi Sir, one question: Say a foreign insurance product was subscribed while status of individual was NRI.say 20 years later the individual returns to India and 3 years later he becomes a resident. Will the maturity proceeds be taxable? Because it was mentioned that global income for resident indians is taxable.
...I am planning to return to India soon and will be eligible for RNOR status. I have NRE FD which was opened less than 1 yr ago. On returning to India, will I have to close this FD (and lose interest ) or keep the FD open till maturity . or convert to resident FD without losing interest. Thanks for your advice.
Sir, thanks for the great sharing! I have one concern. When you gave the example of an NRI returning back to India say in October (Example: 02.10.2022) permanently, then his stay in India during this financial year (2022-23) should be 181 days, which is less than 182 days. Thus, for this FY (2022-23), he is still enjoying the NRI Status. Am I correct? Bcz, I keep hearing you taking the benchmark of 120 days and not 182 days, and thus I am getting confused. It will be great if you can help to clarify my doubt here. Thanks again!
A person coming back to India permanently, may become RNOR directly in the year of arrival, if he comes back to India in October, as his stays for more than 60 days during that year. But this is again coupled with one more condition that he should stay in India for more than 365 days during preceding 4 years. If both conditions (i.e. 60+ during the year & 365+ during previous 4 years) not satisfied, then he will become NRI. At this juncture, it is relevant to note that modified rules of 182 days, 120 days threshold will not be applicable to persons returning to India permanently as they are not coming on a visit.
@@sriramrao2514 Thanks for clarifying. So, in my case, I am staying abroad for 7 years. I am planning to return back to India on permanent basic (on 02.10.2022). So, it satisfies the 1st condition (60+ days during 2022-23). However, for the 2nd condition, it does not satisfy since I have stayed in India for less than 365 days during the previous 4 years. Thus, can I conclude, in this situation, I will still be treated as an NRI for 2022-23. For the next 2 FYs (2023-24, 2024-25), I will be treated as an RNOR and can enjoy the RNOR benefits during these two FYs. Is that correct? Please help to confirm. Thanks!
@@sriramrao2514 I think condition of max stay of 120 days is applicable for deciding RNOR status only when Indian Taxable Income exceed INR 15 lacs. Also what is the relevance of 60 days here? Shall highly appreciate yr expert views. Thanks
@@ashokbharti4354 request you to check the full video and read full thread of comments & replies above… Modified rule of 120 days (where income is more than 15 lakhs) and 182 days (where income is less than 15 lakhs) is not applicable to case where NRI returning back to India permanently. These modified rules are applicable only to a NRI coming India on a visit. There is a significant difference between coming back permanently and coming on a visit
Sir, I have an unique situation. I'm an Indian citizen, resident and salaried employee in Singapore. I came to India Jan 2021 for an emergency and I couldn't enter Singapore due to border restrictions in Singapore. Now I have stayed more than 180 days in this FY from India perspective, i.e after April 2021 till present. Here I have two taxes to be assessed. 1. Tax at Singapore - here Singapore has still considered me for resident taxes since it's a special case due to pandemic. 2. Tax at India - now what will be my status here in India? Am I double taxable for my Singapore income accured in Singapore from April 2021 ? If so, is there any provision I can avail to claim exemptions? I have reached ur personal email as well. I'm ok to take professional consultation service from you if needed. Please respond
Sir, if a person is returning to India after more than 10 years of service abroad (he visited India yearly for 30days annual vacation) on say Oct. 05, 2021, then he will be NRI in the current FY 2021-2022 as he would have stayed 185 days outside India and he will be RNOR in the next 2 FY ie. 2022-2023 and 2023-2024 Is this understanding correct? pls. respond.
Thank you for the educational information of RNOR status.In one of the episodes Mr. sriram said the payer has to deduct income tax when payment made to an NRI.If the tenant does not ask whether the landlord is NRI or not and gives the rent without deducting the tax and the landlord declares the income in his tax return and pays the correct tax is there any problem to the tenant.Your opinion please
Form purchase of agricultural land, one need to determine residential status as per FEMA. If a person is resident as per FEMA, he can purchase agri. land, otherwise not. There is no RNOR status under FEMA.
I would like to know if I bring my 401K amount (equivalent to PF) during my RNOR status , will that be taxable or not ? Do I need to invest somewhere like any pension plan or anything ?
It will not be taxed in India . But check conditions for release of amount in 401 k. If it mentions that the amount has to be reinvested in appliable approved pension plans in India , then pension cash flow you get in India will be considered as your income and applicable slab rates apply.
no such condition in my case that it has to be invested. Another question lets assume I got 1 crore through 401k in year 2020-21 and enjoy the status of RNOR for two years. I keep that money as is as in bank . so once I am out of RNOR status will that entire amount be taxable or only TDS is the liability ?
Assuming that you keep that money in bank , the income you derive from bank in the form of interest is taxable but not the principle amount . There are lot of tax planning possibilities exist for returning NRIs
sir I am doing my phd in usa for that I get 2000$ pm. I want to know that is this income taxable in india ? Can I file my itr for deduction against my fd in india?
Only Mr. Bhat is enough to convey this in one tenth of the time taken to dig out from Mr Sriram who repeats everything thrice. Stateless person is a joke. If a person is not a tax resident in any country it doesn’t mean he is stateless. A stateless person means he is not citizen of any country. How low can be the quality of information from supposedly learned people especially when the video is supposed to be educative?
You need to read through the law books to understand who is a stateless person , if you think we are not giving factual information. Your interpretation is not what the law states
‘Stateless person’ is a word used in the memorandum issued by the government of India while issuing explanations on budget proposal 2020… you can browse it and read it yourself before making it a joke
