Tax related to NRI income

Hello taxpayer,

Going by the limited facts of your query, I can deduce that you are a non resident in India from income tax purpose for FY 20-21.

Regarding maintainence of NRE account and tax exemption on interest from the same, the NRI status needs to be looked upon as per FEMA act and not income tax law which I hope you will be able to meet.

Also, you may not get covered within new residency rules as per the given facts 

However it is advisable to take telephonic consultation and share complete facts for detailed understanding and precise advisory.

Best Regards, 

Dear Sir,

Hope you are doing well !!

1. You will be treated as non resident for tax purpose.

2.Yes,you can legally operate a NRE bank account.

3.As long as you are an NRI, interest earned by you on your NRE account is exempt from tax.

4. No.

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

Hi

1. Your residential status will be Non resident for tax purposes.

2. Yes 

3. Interest income will be exempt till your status NR. Interest earned on this account is tax-free in India

4. NO

Please have a phone consultation for details discussion.

- For precise answer, I need exact no .of days of your stay in India from 01.03.2016 to 31.03.2021. Arrival to and departure from India is treated as stay in India.

On the basis of limited information, my advise would be based on some assumptions.

- Assuming you were in India from 01.03.2016 to 31.03.2020 for 365 days or more and 60 days in India in 2020-21 then you will be treated as RNOR. In such case, Indian income is taxable in India.

- If you are RNOR then there is no need of NRE account. It is required in case of NRI. Interest from NRE FD is taxable.

Under new clause or exception, residential status is treated as RNOR. 

For detailed discussion, you may consult telephonically.

If you have stayed 200 days outside India then prima facie you are non resident but we need to check other aspects as well.

NRE accounts validity depends on FEMA rules and not Income tax rules.

Yes you should show it in IT return.

Yes we can discuss on other matters over call.

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

Thank you

As per Article 16 of DTAA, salary from employment on a ship of a foreign country may be taxed in that country.

Also, you are out of India for 200 days, which means you are in India for less than 182 days in the Previous Year. Hence, you will be taxed by the foreign country in that case.

You may open NRE account since you are a non resident and the interest on NRE account will also be taxable in the foreign country.

According to the new rules of section 6, if the income of an Indian citizen, other than income from foreign sources, exceeds 15 Lakhs, he shall be deemed to be resident in India. But from the details provided, the income earned appears to be from foreign sources only. Another condition in this new rule is that the individual should not be liable to tax in any other country.

Thanks for asking this. Good question. Apologies for edits.

Feel free for any clarification.