How to maintain NRE Status?

Tax queries 147 views 4 replies

a t

3 Points Joined November 2022

Hi,

I was running a proprietary firm in India since 2019. My gross receipts were 60 Lakhs in this current financial year.

But I just came to UAE in August 2022 and registered my business here. Visa Issue date: 22-08-2022 which is valid for the next 5 years.

Because my bills were due to my clients so I came to UAE and closed all Indian accounts and opened NRE accounts.

Last month, I took my money from my clients and remit to my NRE accounts.

Now, my questions are:

1. Do I need to maintain a few years as an NRI status in Dubai only?

2. Can I go back to India and become a resident there only after maintaining NRI status for this year??

Is there any problem??

3. Or should I stay 2-3 years in UAE ??

Annual Turnover in India (Proprietorship Firm) - 50Lakh (April to till date)

Can I reside in any other country for the next financial year and maintain NRI status?

Note: if I move to India in "April 2023" by maintaining only this year's NRI status then do I need to pay tax on the amount I have in my NRE accounts? Is there any issue?

Or should I keep maintaining a few more years as NRI STATUS to avoid tax liability in India?

Please guide me properly to move forward. I am looking for an experienced CA who can help me to provide the best information, and maintain my accounts and all.

Thanks

Replies (4)

sabyasachi mukherjee

27934 Points Joined May 2017

Pl s send your details at contactat @ easyaccountingaudittax.co.in

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

198131 Points Joined July 2016

1. Not mandatory.

2. Yes.

3. 1. Yes.

a t

3 Points Joined November 2022

I hope you read my query. This is what I am looking for now. (Once I will satisfy with your responses then definitely outsource my work to you.)

But in addition, I also run a Sec-8 company in India. The second director is from India and lives in India only. So is there any problem? Also, the NGO has an FCRA bank account in NMDB bank New Delhi but not FCRA registration because that is just a 2.3-year-old organization.

By the way, what will happen to my existing FDs which have been booked for the next 5 years? I know that 1 year will be tax-free but what about the remaining 4 years' interest?

Most Importantly:

On the same point - will the tax department not ask me how did you send the fund in just 1 year by becoming NRI now you came back to India? I have a confusion here. So please clarify this and send me your no. so that we can connect on WhatsApp or meet for further work. I don't want to be in trouble and break any tax evasion laws.

a t

3 Points Joined November 2022

I hope you read my query. This is what I am looking for now. (Once I will satisfy with your responses then definitely outsource my work to you.)

By the way, what will happen to my existing FDs which have been booked for the next 5 years? I know that 1 year will be tax-free but what about the remaining 4 years' interest?

Most Importantly: