Returning NRI

As I have mentioned you earlier also if before 2015 you were resident and if you come to India mid september you will be a resident for 2019-20 also and therefore your US salary will also be taxable in India but you will get credit of tax paid in US.

If you return mid October it would save your tax on US salary.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Dear Sir,

Hope you are doing well !!

If you will be staying 182 days or more in India then you will be treated as resident in India.

A resident will be charged to tax in India on his global income i.e. income earned in India as well as income earned outside India.

However, you can claim the foreign tax credit on your US income u/s 90 & 91 of income tax act.

Under these sections, if the taxpayer is a resident of India, and he has paid taxes outside India, he can claim a credit of such foreign taxes paid against his tax payable in India.

Hi,

- First of all if your stay in India will be 182 days or more than you will be resident in India and the total salary will be taxable in India.

- As you are returning in the mid of sep.19, definitely your stay will exceed 182 days in India resulting into taxability of your US salary also.

- You can claim the tax relief on tax paid in USA from the total tax payable in India. Retain the tax certificate of USA.

Thanks

Hello Sir,

You can claim the FTC for taxes paid in US.

In accordance with Rule 128, in order to claim FTC, the taxpayer is required to file following documents on or before due date of filing of return:

1. A statement of :

• foreign income offered to tax
• foreign tax deducted or paid on such income in Form No. 67

2. Certificate or statement specifying the nature of income and the amount of tax deducted therefrom or paid by the taxpayer :

• From the tax authority of the foreign country
• from the person responsible for the deduction of such tax
• signed by the taxpayer

3. Proof of payment of taxes outside India

Hi

If you are coming in mid September this year, you will become a resident in India for the financial year 2019-20. Being a resident, your global income shall be taxable in India. However, you will get Foreign Tax Credit of taxes paid in US.

If you can delay your return, it would be better to come to India in the month of October so as to make your period of stay in India less than 182 days in the FY 2019-20.

Hello,

If you return in the mid of September, your stay in India would be more than 182 days for the current financial year. This will make you a resident as per the Income Tax rules. And your global income will become taxable.

If you can reduce your stay in India for less than 182 days for the current F.Y. 2019-20, that would save you tax on your US salary. 

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Refer to section 6 of income tax act which states as under:

6. For the purposes of this Act,—

(1)  An individual is said to be resident in India in any previous year, if he—

(a)  is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or

(b)  [***]

(c)  having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.

Hi,

- Four years will be counted from F.Y. 2015-16 to F.Y. 2018-19 which is not relevant in your case as your were in USA. The only condition relevant is 182 days in current F.Y. 2019-20.

Thanks

In your case concept of 60 days in previous year and 365 days in the preceeding four years preceeding the previous year is not applicable as you were in USA since Jan.2015.

 A person would be a RESIDENT of India for income  tax purposes if

• He/She is in India for 182 days or more during the financial year

OR

• If he/she is in India for at least 365 days during the 4 years preceding that year AND at least 60 days in that year.

So therefore – if you do no satisfy the condition laid out above– you will be considered a NON RESIDENT INDIAN.

It is not applicable to you. You will not get the benefit from above clause.

No you won't get the benefit as the transfer is permanent transfer and the word used is or in that section and since you satisfy first condition of 182 you can't get benefit of second condition.

Thank you

You won't get the benefit of that clause. Condition of 182 Days in the current F.Y. will be applicable to your case.

No Sir, you won't be get benefit from this clause as you were in USA.

You need to satisfy only first condition of 182 days.

As per the Indian tax laws, taxability of any income is dependent upon the residential status of person and  sources from where said income is earned.  Residential status depends on the physical presence of a person in India during the said year and also past 10 years.  So considering this, you need to firstly determine your residential status as per tax laws. If you happen to be resident in India your worldwide income is taxable in India.  However, if you are non-resident or not-ordinarily resident, then only Indian sourced income is taxable.

Under the Income-tax Act, to understand the residential status, you need to read the Explanation under the main section 6 which has exceptions.  Explanation to section 6(1) has clarified that if a citizen of India being an individual leaves India in any previous year for the purpose of employment outside India, the provision of sub-clause (c) shall apply as if the 60 days period has been substituted for 182 days.
In short, when a person goes abroad for work he would be resident if he stays in India for more than 182 days in India and 365 days in past 4 years.  This is only applicable to the year in which the person departs.  You will not get this benefit in the year of return.  You must ensure that you stay less than 60 days in India during 2019-20 and your stay in India is less than 365 days in last 4 years (setion 6(1) of the Income-tax Act). 

To accurately determine your residential status, you need to check your physical presence in India during the last 10 years based on your passport.  Let  me know if you need any assistance to determine your residential status such that taxability is determined.