Returning nri taxation

Dear CA's,

NRI Couple while working overseas had separate overseas Bank Accounts, In India they had common NRE Bank Account in Husband/s name. When they planned to return for good, they remitted funds into this NRE Acc.

Upon return, they closed NRE Acc and funds transfred to their newly opened separate resident Bank Accounts in India say in 50/50 ratio.

Qns:-

1) Now, while planning Tax for next FY, they can both file Taxes separately and claim 80C rebates separately...? Is this correct? 

Both have income staments/overseas Tax paid records with them, in case required.

 

2) They are elibible for RNOR status. Is there a separate way/separate ITR Form to file Income Tax as RNOR- how should they indicate RNOR status while Filing Tax next year, so that overseas Income is not taxed ?

 

Many Thanks.

Replies (4)

1. Correct.......

2. In the same ITR form, residential status options are available for selection.

Tanks Dhirajlal Ji for replying.

I have one more doubt:- 

Should the investments (Tax saving and otherwise like Mutual Funds etc) be made from the NRE Account before closing it

Or,

NRE Acc can be closed and investments can me made from Domestic bank Acc as well.... from Taxation perspective ?

Or, this doen't matter at all.....?

 

Thanks

When you do not wish to repatriate any funds back to foreign accounts........

In that case it will be advisable to use normal/domestic account/s.

Dhirajlal Sir,

Thanks for your reply. I have one more question :-

Suppose NRI closes his/her NRE Account upon becoming resident and stays in India for 1/2/3.... years. Then he gets another opportunity abroad and decides to move abroad and later for some reasons need signifcant part of his/her Indian corpus for investments there.

Can he/she repatriate savings (at least his/her overseas Income earned during previous NRI term) at this stage ? If yes, whats is the process

Thanks a lot Sir !!

 

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