Nri rules for dependent wife in us

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2017 I have studied in US for 1.5 year in 2012 & 13 and moved back to India in June 2014. I was employed in India for 2.5 years till December 2016. I got married in February 2017 and moved with my husband in March 2017 on dependent visa. At present, I am not employed anywhere nor do I have any income abroad. I have bank accounts, Depository account, PPF, shares investment and mutual fund investment in India. I may earn dividend, interest, capital gain and most probably EPF withdrawals which will be taxable in current year in India.

I may visit India in the current year to streamline all my investments. If I stay for more than 60 days, I would be Resident but if in case, I can not than what happens to my investments? My question is:

1. When I become NRI? I mean from the date of my leaving India? or after staying away for more than 182 days from India? I mean which is exact date from which NRI rules will be applicable? This FY or from the next FY?

2. Question is not regarding taxability of income but a technical one for compliance purpose. That is when it becomes obligatory for me to inform all concerned parties where I am having investments regarding my status?

3. Do I become NRI for the next financial year following the financial year where I have become NRI? As I am not sure whether I would be there for more than 60 days in current FY in India, my status is unsure till the end of current financial year. In such a case, what course I should take?

4. Is there any relaxation in rules for dependent spouse who are not allowed to take any position or work for profit in USA:

Experts pleas guide me.

Amol S Joglekar

Amol S Joglekar (Expert)
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09 November 2017 residential status is to be decided every financial year wise.

Amol S Joglekar

Amol S Joglekar (Expert)
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09 November 2017 The residential status for 2017-18...i.e. from 01/04/2017 to 31/03/2018....you need to stay more than 182 days outside India. i.e to say if you have not come to India since march 2017, now you can come to India and stay till 31/03/2018 and yet you will be regarded as Non Resident.

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Amol S Joglekar

Amol S Joglekar (Expert)
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09 November 2017 your Indian income is taxable in India whether you stay in India or not.

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2017 Sir,
I was resident up to and including F.Y. 2016-17. I moved to US in March 2017 only. As I was in India for more than 365 days in last 4 years preceding to current year, I require to stay in India only for more than 60 days in this year to qualify as Resident.

My questions are pertaining to applicability date of my status whether I am NRI or not. If I do not stay in India for more than 60 days in current year, I will become NRI though I stayed for more than 365 days in last 4 years.

I appreciate your prompt reply but I request you earnestly to go through my query again as I think you have missed out few facts of the case and questions there in.

Amol S Joglekar

Amol S Joglekar (Expert)
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09 November 2017 please.......whether or not....
your income is taxable in India whether you are non resident, OR resident or resident but not ordinarily resident
Do you agree with that?
so to say, it does not make any difference whether you stay upto 60 days or more than that....your indian income is still taxable
are you getting what i am suggesting?
Now for academic purpose........please forget the clause of 60days.....and focus on 182 days....

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2017 Thank you sir...I have already said its not regarding taxability of income...its given and am fully agree with you that any income in India is taxable whether you are Resident or not.

Its technicality of applicability timing and when to inform concern parties regarding status change.

Hope, I am clear about that.

Amol S Joglekar

Amol S Joglekar (Expert)
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09 November 2017 see, so far as PPF account is concerned.......the software programme of banks is not YET geared up to close the PPF account before the completion of 15 years.
And so far as informing is concerned, you need to follow the definition of FEMA and not income tax.....
FEMA definition of non resident is very simple.......please go through the same

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Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2017 Thank you sir...one more request can you share link for FEMA definition?

Amol S Joglekar

Amol S Joglekar (Expert)
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09 November 2017 https://www.personalfinanceplan.in/opinion/who-is-nri-as-per-fema-and-income-tax-act/

please go through the link and then please revert for query if any.