Tax Consequence..

This query is : Resolved

Samir (Querist)
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20 February 2011 Before becoming a NRI , resident individual having saving account in different bank in India. What if NRI remits his income from aborad to this saving account which were there before he became NRI??? Is it taxable????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 February 2011 Technically, he has to inform his bankers to
convert his savings account into NRO A/c
within a prescribed period.
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As his status is NRI and after receiving the income there, he is remitting his income after paying taxes in that country, so it can't be said as income accrued or arise in India.
*
As such no tax is leviable on remittance.

Guest

Guest (Expert)

20 February 2011 Remittances from abroad is not taxable but interest in these accounts will be taxable.

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Samir

Samir (Querist)
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22 February 2011 Thanks for your valuable reply....

since NRI doesnt converted so saving account into NRE or NRO and continues to remitt in that account??? then in this case can section 69 attracted???

Guest

Guest (Expert)

22 February 2011 No, if the remmitances are genuine.