Does a NRI's foreign income brought back to India becomes taxable once he becomes a resident Indian ?

Question

Lets say I have a fixed deposit worth 50,000 USD in USA which I bring back to India while I leave my NRI status and become a resident. This is money earned abroad while being a NRI, so does this needs to be taxed as well?

Answer 1

Since this income was earned by non-resident outside India it will not be subject to tax in India.Further, such money can also be kept in Indian Bank in FCNR Account.
however, if it is converted in Indian currency and any interest is earned in India it will be subject to tax in India.Refer to www.allindiantaxes.com for all about tax in India

Answer 2

First of all, let me brief you the different type of residential status and scope of taxable income covered for these status.

As per Income Tax Act, individuals are divided into 3 categories
1) Resident and Ordinarily Resident in India: (all incomes where ever earned are taxable in India)
2) Resident and Not Ordinarily Resident in India (all incomes received or deemed to be received or accrue or deemed to have accrued in India are taxable in India) and
3) Not Resident in India (Income received or deemed to have been received in India are taxable in India)

Now, as you are an NRI, any income received outside India is not taxable in India. RECEIVED means first receipt. Subsequent, movement of money from one place or account to other place or account doesn't make it the income earned at other place. For example, suppose you received 1000$ as salary in USA when you were NRI, then you sent this money to India through your FCNR Account. Now, this 1000$ will not be taxed in India, as it has not been received in India, but it has been only remitted in India having been received in USA.

However, there are rules to determine the residential status of all assesses including individuals, although you are saying that you are NRI, but your residential status needs be checked in the light of new provisions of income tax act.

Sharad Aggarwal
9213850820
Delhi

Answer 3

Non Responsible Indians

Answer 4

Yes it is a Taxable Income in India if u put in to your Account. Other wise its treat like Black money

Answer 5

No,Since income earned outside india is already taxed in that country,no double taxation.

Answer 6

Not taxable whether you remain NRI or not, does not matter

Answer 7

Nope. If you already paid tax for the money in US, no need to pay again in India.

Answer 8

No, money earned in a foreign soil is not taxable.