STRANDED NRI

PRAKASH CHANDNANI (PRESIDENT) (84 Points)

10 May 2021  

Dear Sir,

I have below mentioned inquiry : -

1. I was NRI for last 3 years but during FY20~21, I had to overstay in India due to COVID lockdown.  CBDT asked to file NR for to study for give relaxation on case by case but so far there is no response from CBDT.

I need some clarification abt my income, which may become taxable if CBDT doesn't provide any relief :-

A. My Salary in Dubai : Though I spend more than 183 days in India but I am getting my salary in my DUBAI account credited every month, as I can manage my work with phone calls but it is  not a work from home case. As my employer is Dubai resident and my performance is about my work with my client in Dubai/Overseas. 

I think, this salary income may not be taxable in India, even I stayed more than 183 days in India. Am I right ? I we calculate as per INDIA/UAE DTAA  "SALARY" article.

 

B. I have some other income, which I invested a few years in some kind of BONDS for which I am getting a coupon every quarter in my overseas account. As if my tax resident status become ROR in Fy20~21 in India, do I have to pay tax on this income in India, if relief is not provided by CBDT.

 

C. Most important, I bought those bonds worth us$300,000 in 2017, when my tax resident status was NRI and that time exchange rate was Inr71 and I remitted from my NRI account in India but during FY20~21 those bonds maturity value I received in my overseas account in Dubai.

If the exchange rate was 74 at the time of receiving that maturity amount, do I have to pay TAX on forex gain too ? I mean  on us$300,000 x inr3 = INR 900,000........or I have to calculate forex gain from 01st Apr'2020 (exchange rate) 

D. I get Interest on my NRI fixed deposit and as I per my knowledge, being PROI under FEMA this is not going to be taxed in India, as it will be treated exempt under 10(4)ii, no matter If I have spent more than 183 days in India, as still I am employed in UAE with valid visa and I have no intention to stay India.

I am so confused, please guide properly.  pra0343 @ yahoo.com

Regards

PkC