29 June 2023
Sir, I was having RNOR status of 2 Finacial years which expired on 31st March 2023 thus changing my status to ROR for current FY 2023-24. My query is that my Saudi Arabia bank account holds balance money as a result of payment of retirement benefit ( gratuity) + Salary arrears paid after I returned to India permanently in January 2021 after 15 yrs as NRI continuously then. What is the tax implication of bringing this money to India now ?
29 June 2023
The balance lying in the account as of 31.03.2023, will not be taxed again. Any interest earned on it and any additional income earned in foreign country needs to be declared in next AY, along with Indian Income.
30 June 2023
the above salary payment in Saudi Arabia was Tax Free and no interest earned due to islamic provisions applied there. how does the question of taxed again arise when tax was never paid ? Now, when this money will arrive in India during current FY 2023-24, it will be in the account of ROR and not RNOR. Does this make different tax implications ?
30 June 2023
Taxation is based on any income earned or accrued in relevant financial year. You would have declared the balance of the account in schedule FA while filing current ITR as RNOR. When you transfer the same amount to your sav account in India, it will not said to be income earned in the process of just amount transfer from your foreign bank account to your own Indian bank account. Hence it will not be taxed.
CAclubindia
