Residential status

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 I am an Indian Citizen working as an employee in a Pvt. Ltd. Company in Kathmandu, Nepal and I am staying here from more than 182 days for P.Y. 2013-14, whether I will be treated as NRI for Filing my Income Tax Returns? Whether I need to open NRE A/c? Someone told me that NRI status is not applicable for SAARC Countries as per FEMA Act. Please Clarify with Notification.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 April 2014 for an indian citizen, the conditions remain same and he/she shall be considered as a NRI if he stays outside India for the specified period.

The only problem with Nepal is how to prove that you were in Nepal. as long as you can adequately prove that, there is no issues as per law for claiming NRI status and opening NRE account.

However, a citizen of Pakistan and Bangladesh is never considered as NRI

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 Proof for residence in Nepal can be provided through Passport and Tax Residency Certificate but the Banks in India refuse to open NRE A/c in case of Nepal. Is there any problem in repatriating the money to India by Demand Draft in ordinary savings account? In case of NRI status whether I have to show income earned in India only in filling up ITR?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 April 2014 please take a print of the attached file and show it to the bank: https://www.rbi.org.in/scripts/FAQView.aspx?Id=69

as far as income tax return is concerned, you dont have to show income earned outside india if your status is non-resident.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 As it is mentioned "When a person resident in India leaves India for Nepal and Bhutan for taking up employment or for carrying on business or vocation or for any other purpose indicating his intention to stay in Nepal and Bhutan for an uncertain period, his existing account will continue as a resident account. Such account should not be designated as Non-resident (Ordinary) Rupee Account."

So if I keep the existing Account as a Resident account in India there is no problem?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 April 2014 see there is no problem in keeping your account status as resident. as far as income tax is concerned, status of your bank account is immaterial

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