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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 A friend of mine will be obtaining a Portuguese citizenship soon and will be moving to Portugal in January 2015. Hence for the financial year 2014-15, he will be a tax resident of India and will need to file the tax return for FY 2014-15. On account of the above,
* Will he file the return for FY 2014-15 as a "resident" (status), even though he would have moved to Portugal in January 2015?
* Does he need to inform the tax authorities about the change in his nationality?
* On account of the change in his nationality, does he need to surrender his old PAN & apply for a new PAN (non-resident)?
* Will he need to file a tax return for subsequent years if the income earned by him in India, if any, is below the taxable limit or if he does not receive any income in India?
* Are there any tax implications for remittance of funds (savings) from India to Portugal?
Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 July 2014 1. Yes his tax status shall be resident

2. As such section 230 requires you to intimate the tax authorities through form 30C. However, procedure to get income-tax clearance has been removed with effect from 1 January 2003.

3. No new PAN is to be procured. the same PAN shall continue

4. it depends. For eg, for short term capital gains in case of non-resident, no basic exemption is available. So as and when taxable income is earned, tax return for the corresponding AY needs to be filed.

5. no there are no tax implications on remittances