Which ITR if one goes from NRI to Resident in a particular AY?

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Cs26kit (Querist)
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06 May 2021 Hi All,

I am a Seafarer & I am usually required to file ITR-2 since I normally qualify, as per the IT norms, as an NRI. During FY 2020-21, I was working on foreign ship for the first 3 months (April to June). In June 2020 we came back to India due to the pandemic. Since then I am home. Now this stay in FY 2020-21 amounts to more than 181 days in India. Hence, according to the IT norms, I am now a Resident tax payer & my global income of the first 3 months is now taxable in India.
(Kindly correct me if I am wrong with the above info.)

My total Global Income for those 3 months does not fall in the Taxable slab though.

My queries pertaining to AY 2021-22 are as follows.

1. Should I file ITR-1 or ITR-2 this time since I would be treated as a normal Resident tax payer?

2. I sent my first 3 months of income to my NRE account. Should I now consider that in my Taxable income calculations?

3. If yes, then in which Section/Schedule should I disclose it as "Global Income." (Kindly be very specific.)
(For example, if I am supposed to file ITR-1 this time, then should I disclose it in Section B : B1 Gross Salary?
If ITR-2, then which schedule)

4. Is Standard Deduction of Rs. 50,000 under Section 16 applicable to me?

Any other useful pointers would be highly appreciated.

Thank you.
CS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 May 2021 You are right.

1 File ITR 1 being resident.
2 yes, show it under salary income.
3 show it under gross salary. Disclose NRE interest under income from other sources- interest.
4 Yes, standard deduction 50000 applicable to you.

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