Planning to return to India? Here's a thread on what you need to do from a tax/ compliance perspective.
#r2i #returntoIndia #incometaxindia
#r2i #returntoIndia #incometaxindia
Assets outside India💰
Continue to hold. You can hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such assets was acquired, held or owned by you when you were a non-resident or was inherited from non-resident
Continue to hold. You can hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such assets was acquired, held or owned by you when you were a non-resident or was inherited from non-resident
Pro-tip:
Be mindful of income tax regulations that determine scope of total income. You want to minimize tax paid in India on overseas assets and avoid double taxation. Plan your investments and date of return in the most tax efficient manner.
Be mindful of income tax regulations that determine scope of total income. You want to minimize tax paid in India on overseas assets and avoid double taxation. Plan your investments and date of return in the most tax efficient manner.
Indian Assets
💰 Non-Resident Ordinary (NRO) a/c: To be re-designated to Resident a/c
💰 Foreign Currency Non-Resident (FCNR) a/c: Permissible to hold up to maturity and then to be converted into Rupee Account or Resident Foreign Currency (RFC) a/c
💰 Non-Resident Ordinary (NRO) a/c: To be re-designated to Resident a/c
💰 Foreign Currency Non-Resident (FCNR) a/c: Permissible to hold up to maturity and then to be converted into Rupee Account or Resident Foreign Currency (RFC) a/c
💰 Non-Resident External (NRE) a/c: To be re-designated to Resident a/c or balance can be transferred to RFC a/c
💰 Shares & Securities: Returning India is required to inform the Depository about change of his/her residential status from non-resident to resident
💰 Shares & Securities: Returning India is required to inform the Depository about change of his/her residential status from non-resident to resident
Pro-tip:
Note that while NRE account and FCNR account here tax exempt while you were NRIs, they become taxable when you become Resident in India (even if you forget to re-designate them for whatever reason).
Note that while NRE account and FCNR account here tax exempt while you were NRIs, they become taxable when you become Resident in India (even if you forget to re-designate them for whatever reason).
Authorities/ Services to inform about return to India? 🗂️
No requirement to inform Government or RBI.
No requirement to inform Government or RBI.
Returning Indian must inform the following:
1. All bankers with whom they hold banking accounts and get it redesignated,
2. Depository participant with whom they hold DEMAT accounts,
3. Companies where NRIs are Shareholders / Debenture holders and firms where they are partners.
1. All bankers with whom they hold banking accounts and get it redesignated,
2. Depository participant with whom they hold DEMAT accounts,
3. Companies where NRIs are Shareholders / Debenture holders and firms where they are partners.
Tax Implications 😫
The tax liability of a person returning to India would depend on the Residential Status of a person as per the Act.
The tax liability of a person returning to India would depend on the Residential Status of a person as per the Act.
Under the Act, income earned outside India is liable to tax in India only if the person is ROR.
Foreign income is not taxed for an RNOR.
Foreign income is not taxed for an RNOR.
A returning Indian who has been a NR as per the Act for 9 years or more or whose stay in India was less than 729 days in preceding 7 years, then generally for 2 successive years he may be considered as a RNOR.
To maximize your NRI status, what date should you return to India?
It may not always be possible to plan your return to India. But for those with such flexibility, try to come back on or after February 1 (or February 2 in case of a leap year) of a FY in order to ensure NR status
It may not always be possible to plan your return to India. But for those with such flexibility, try to come back on or after February 1 (or February 2 in case of a leap year) of a FY in order to ensure NR status
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