• RNOR status

Hi
I am a UK citizen with OCI. I would like to come and settle in India. I lived in UK for the past 33 years.
I am planning to come to India on 10th of Oct 2021.
I stayed in India for the past 7 years about 520 days. Until when I will be a RNOR for tax purposes.
Regards
Asked 3 years ago in Income Tax

An individual is treated as 'Resident but Not Ordinarily Resident' (RNOR) if any of the following conditions are satisfied:
(a) an individual who has been a non-resident in India in 9 out of 10 previous financial years preceding that year, or
(b) if such individual has been in India for an aggregate period of 729 days or less in the preceding 7 years,

If you are planning to come to India on 10th of Oct 2021, your RNOR status would be valid for 3 years. i.e. till 9th October 2024. 

 

Best Regards,

Ajit Jain

+[deleted]

Ajit Kumar Jain
CA, Mumbai
26 Answers

5.0 on 5.0

If you dont have any income in India during RNOR status, you dont need to file return of income in India except in  case of certain specific high payments (for eg. If your electricity payment during the year is more than 2 lacs)

Lakshita Bhandari
CA, Mumbai
5687 Answers
912 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

In case of RNOR individuals, the foreign income (i.e., income accrued outside India) shall not be taxable in India.

 

If you don't have any income in India, then you don't need to file ITR in India.

 

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
5188 Answers
291 Consultations

5.0 on 5.0

If you come on 1st week of July 2021, you will still be RNOR and you will enjoy RNOR till June 2024. 

 

Also, tax return filing is based on taxable income generated in India and not as per the residential status. During your RNOR status, if you are generating any income which accrued or earned in India and total income is exceeding INR 250000, then you are required file tax return in India. 

 

Hope this clarifies. 

Ajit Kumar Jain
CA, Mumbai
26 Answers

5.0 on 5.0

You can enjoy RNOR status for 2 financial year including the one in which you came down to India.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.

Thank you.

Naman Maloo
CA, Jaipur
4280 Answers
98 Consultations

5.0 on 5.0

1. You are planning to come in F.Y. 2021-22. If you are planning to  come on 10.10.2021 first you have to check whether you will fulfill basic conditions of resident otherwise you will be treated as NRI for F.Y. 2021-22.

 

2. If you become resident in F.Y. 2021-22 and 2022-23 then you will be RNOR till F.Y. 2022-23 and from F.Y. 2023-24 you will be ROR.

 

3. RNOR is required to file ITR for income earned in India.

 

4. Update the status accordingly in bank.

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

Hi

 

You will be considered Resident but Not Ordinarily Resident in a year – if you satisfy one of the two conditions for a Resident (mentioned above) AND-

  • If you have been an NRI in 9 out of 10 financial years preceding the year.

OR

  • You have during the 7 financial years preceding the year been in India for a period of 729 days or less.

What is your taxable income for the purpose of Indian Tax Laws: If you are a NON RESIDENT INDIAN, simply put –

  • Any income that is ‘earned’ in India is taxable for you in India.
  • Your Income outside of India is not taxable in India.

Requirements of Return file only if you have income earned in india.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

please take phone consultation for detailed discussion.

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

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