Resident (it act) person resident outside india (fema)

Tax queries 258 views 1 replies

Hello Sir, I am NRI for many years and working in UAE but now due to my personal matter, I have to visit india and stay for more than 182 days though I am employed overseas with my intention to go back. Please inform tax treatment of my Income if my  RESIDENT STATUS is as follows :-  

                           IT ACT                         FEMA

1996~2014         NRI                               Employed overseas

2014~2016         RNOR                           Employed overseas  *Stayed more than 182days/each year in India

2016~2017          NRI                               Employed overseas

2017~2018          RESIDENT                   Employed overseas *Going to stay more than 182 days in India.

My question is, though I am PERSON RESIDENT OUTSIDE INDIA (As per FEMA act) but for time being about further 2-3 years I will have to visit and stay more than 182 days in India for my personal matter (Not for business or Job) and  I do got my job (overseas) and holding employment/resident visa of UAE and I have intention to go back, once my personal matter in India settle down.

So under these circumstance, what will be tax treatment of my Income for FY2017~18, which is as follows :-

A.Salary in UAE                    Inr24,00,000     *(I get from uae resident employer in my uae account)

B.Interest on NRE FD          Inr18,00,000      

C.Local rent Income             Inr   2,00,000

Total                                      Inr44,00,000

My questions are :-

1. Do I have to file Income tax return ? if above A and B  income is not taxable.

2.Salary in UAE : Do I have to declare under my Global Income and will it be tax free under INDIA/UAE DTAA article 15(a) ?

3.Interest on NRE FD : Will it remain tax free under IT section 10(4)ii ? *(which says if a person is resident outside india under FEMA than this income going to be tax free.) and do I have to declare in my income tax return.

Requesting you to please reply after reading INDIA/UAE DTAA article 15(a) and IT section 10(4)ii or quote any other section and not just with your own idea, which going to matter to my tax liability/treatment.

Thanks in advance.

Regards Prakash

Replies (1)

I just came to know that RNOR STATUS is granted to RETURNING NRI only, whereas I was employed overseas and didn't came india for good, So for  staying more than 182 days in INDIA on vacation, my Residential status become RESIDENT in IT act but  remained PERSON RESIDENT OUTSIDE INDIA as I am employed overseas and intented to go back.

Same way being RESIDENT of India in 2017~18 (IT ACT) but PERSON RESIDENT OUTSIDE INDIA (FEMA ACT), what will be tax implications on my Income.

*SALARY IN UAE                Applys  *DTAA INDIA/UAE ARTICLE 15(A)

*INTEREST ON NRE FD    Applys   *SECTOIN 10(4)ii

If above 2 incomes stand tax exempt under above mentioned Clause/Section, do still I have to file return ? and mention whole income in TAX EXEMPT column.

Please guide.

Regards

Prakash 


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