CA Rakesh Ishi
(Working at Private Company)
(7775 Points)
Replied 25 June 2019
Hope this helps.
You are considered an Indian resident for a financial year:
i. When you are in India for at least 6 months (182 days to be exact) during the financial year
ii. You are in India for 2 months (60 days) for the year in the previous year and have lived for one whole year (365 days) in the last four years
If you are an Indian citizen working abroad or a member of a crew on an Indian ship, only the first condition is available to you – which means you are a resident when you spend at least 182 days in India. The same is applicable to a Person of Indian Origin (PIO) who is on a visit to India. The second condition is not applicable to these individuals. A PIO is a person whose parents, or any of his grandparents were born in undivided India.
You are an NRI if you do not meet any of the above conditions.
NRI or not, any individual whose income exceeds Rs.2,50,000 is required to file an income tax return in India.
Income from salary will be considered to arise in India if your services are rendered in India. So even though you may be an NRI, but if your salary is paid towards services provided by you in India, it shall be taxed in India immaterial of where you are receiving the income.
Interest income from fixed deposits and savings accounts held in Indian bank accounts is taxable in India. Interest on NRE and FCNR account is tax-free. Interest on NRO account is fully taxable.
The new ITR-2 form asks individuals not only to specify the residential status as resident, resident but not ordinarily resident or non-resident, but also to provide additional information with respect to his residential status, such as, number of days of stay in India, jurisdiction of his residence and tax identification number in case he is a non-resident.
CAclubindia
