Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

NRI OR INDIAN

174 views

Save Share

Join Us Follow Us Add as Source

Manana Kith

Head of Operations

22 Points Posted on 30 September 2020

Hello Everyone,

Am I Indian or NRI? (in regards to accounting and income tax)

I was born and stayed in India for over 37 years. I am a Indian Citizen.

On 10 Jan 2020 , I came to USA, and I am presently residing & working in USA.

Before coming to USA, I only stayed in India all my life.

However in 2007 & 2015 I went for a foreign holiday for 5-6 days only to south east asia.

For all these year, I have simple savings account and current account in India, and used to file my income tax returns as resident indian and firm accounts.

Am I NRI or Indian now ?
What should I do now ?

Please advise and guide if possible ?

Regards

Replies (3)

Quick Summary

This discussion addresses the crucial question of whether an Indian citizen residing and working in the USA for over a year qualifies as an NRI for tax purposes. The user, who lived in India for 37 years and is an Indian citizen, moved to the USA on January 10, 2020. While generally an Indian citizen residing outside India for 183+ days in a financial year is considered NRI, specific financial year rules apply. For AY 20-21, the user is considered a resident in India, but for the current FY 2020-21, they are classified as NRI as of October 10, 2020.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 30 September 2020

In simple terms, an Indian citizen residing outside India for a combined total of at least 183 days in a financial year is considered to be an NRI. NRIs are eligible to vote, and most importantly, only the income that they have earned in India is taxable in India.