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Nri status and tax on foreign earned money

Abdul Wahid (Engineer) (26 Points)

01 November 2016

Hi,
Thanks for your supportive forum.
I was in UAE for about 3 years and came back to India in mid June this year. After coming here, I have transferred my gratuity etc. to my India NRI acccount. I have following questions.
1. Do I have to go back to UAE and spend some months in order to get NRI status for this year?
2. Do I have to pay income tax on money transferred from to my NRI Account? Will there be tax on money transferred after april 1st this year?

Thanks,
Abdul Wahid

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182355 Points)
Replied 02 November 2016

1. Yes, if you stay for 182 or more days in this financial year, your status will change. (assuming less than 365 days in last 4 years).

2. No to both. But interest earned during this year over the money trasferred to NRI account will be taxable.

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Abdul Wahid (Engineer) (26 Points)
Replied 02 November 2016

Thanks Dhiraj,

If I do not go back, will I still have to pay tax on the amount in my NRI account earned so far?

Thanks again!

Abdul Wahid

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182355 Points)
Replied 02 November 2016

Any income earned in India (including bank interest), is taxable in India, irrespective or your NRI/resident status, provided over and above basic limit of 2.50L