Income tax for NRE account

Hi,

You have stayed in India for less than 182 days in FY 2016-17. So, you are a Non-resident for FY 2016-17.

You will have to pay tax in India on only the Income arising in India.

As your stay in India is for more than 182 days during the FY 2016-17, you will be resident. However, as you have been Non Resident for earlier years, you will be Resident but Not Ordinarily Resident for FY 2016-17. Hence, your income earned in Gulf will not be taxable. You will be required to pay tax on income earned in India only.

As per our view yes you need to pay taxes in India. In case of FDR you need to declare Interest earned and pay taxes.

Dear Soumya,

As your stay in India is for more than 182 days during the FY 2016-17, you are a resident for the purpose of Income tax act and since your stay in foreign was only for 1.5 years, you will be an ordinary resident in India and your global income will be taxable in India.

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Dear Soumya,

In your original question, you mentioned that you returned to India on 8 September 2016. If you have returned on 8 September 2016 and stayed in India till 31 March 2017, you have stayed for more than 182 days in India. In that case my answer remains same as given earlier.

However, if the facts are different and you have stayed in India for less than 182 days, then you need to see whether you stayed in India for more than 365 days in Last 4 years or not. If yes, then again my answer remains same but if no then your foreign income is not taxable in India.

Thanks and Regards

Abhishek Dugar

CA CS B.Com

As per your first query, you returned to India from Gulf on 8th Sept 2016. Hence, for the financial year 2016-17, you stayed in India for more than 182 days and thus you become resident in India. Even in your follow up query also, you mentioned that you stayed outside India 22 days short of 180 days and thus you also agree that you stayed in India for more than 182 days during the FY 2016-17. Hence, you are a Resident in India for the financial year 2016-17.

Now that you are resident in India for the financial year 2016-17, your Indian Income will be taxable. Further, your global earnings, i.e., income earned in Gulf also will need to be added to your income. It will not be taxable only if you are Resident but not ordinarily resident for the FY 2016-17. Now going back to your first query, you mentioned that you have been outside India for 1.5 Yrs approx, which implies that perhaps you are an ordinary Resident in India for the FY 2016-17 and the status of Resident but Not Ordinarily Resident may not apply for this FY 2016-17. However, to confirm this, we also need to know your stay outside India for the earlier 4 years also.

Sir we also have given based on the same that you were in India for more than 182 days. Sir as per your query you mentioned that you were in India from 8th September 2016. The amount you earned in Gulf if bought to India will be taxed. Any how the amount you earned in India is taxable in India.

Thus to sum up any amount bought to India from gulf (As there will not be any tax on Income) and income earned is taxable.