RNOR or NRI?

This query is : Resolved

Guest

Guest (Querist)

06 June 2024 I moved to Middle East last year where I started a company and was an employee of that company.

Number of days in India in FY 2023-24: 180
(Indian) business loss brought forward from FY 2022-23 to FY 2023-24: -20L
Profit from (Indian) business for FY 2023-24: 30L

My understanding of NRI status:
- Gone outside India for purpose of employment
- In India for less 182 days
- Total income from India less than 15L

My understanding of RNOR status:
- Gone outside India for purpose of employment
- In India for less 182 days
- Total income from India more than or equal to 15L

Is my understanding of NRI and RNOR status current?
Will my "Total Income" be 30L or 10L (30L - 20L offset from last years loss)?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 June 2024 You can't be employee of your own company. You have gone Middle East for business.
You are resident of India for FY 2023-24.

Your understanding of NRI and RNOR is wrong.

Guest

Guest (Querist)

07 June 2024 Thanks for the response.

Incase I didn’t explain properly, I want to add clarification points:
I went to Middle East on employment visa. I am employee of the company in the Middle East (i.e I receive monthly salary, have employment contract etc). But I am also one of the shareholder of that company.

Note: The business income I mentioned in India is stock market trading income which I was doing part-time before I moved out of India, and is unrelated to the company/business in the Middle East.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 June 2024 In such a case you are NRI.
As you are resident of Middle East RNOR not applicable.

Message likes : 1 times

Guest

Guest (Querist)

07 June 2024 Thanks for the clarification.

As an NRI, I found out that I can leave the FSI and FA blank.
But there are other fields in “PART A - General” regarding director and unlisted shares.

Do I need to declare if I am director/shareholder of a foreign unlisted company? Or can I leave those 2 questions blank?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 June 2024 Leave it, as you are not a director of Indian company.
Only Indian company director details to be filled.