I am currently a resident taxpayer with a foreign retirement account. There is a good chance that I return back to USA after 4 years and again become NRI.
In such a case, as per the rule 21AAA all accrued income will be taxed in the year preceding the previous year. Does this mean this will have an interest and penalty component? Do I need to amend the tax return?
My main question is: If I have a good chance (not sure) of becoming NRI again (before withdrawal) should I still opt for 89A?
CAclubindia
