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Tax for recently returned NRI

Sashi Bajaj (NA) (27 Points)

06 August 2024

I returned to India in February 2023 and am currently unemployed. Prior to this I was abroad and resigned from by company in September 2022. I have two questions.

For the current assessment year FY24-25 (tax period FY23-24), do I need to show my overseas bank account?
Although I was unemployed, my former company made a PAYMENT to my Singapore based bank account in December 2023, for my job that ended in September 2022. Will I be taxed in India for the PAYMENT?

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 06 August 2024

All depends upon your Residential status, whether you are ROR or RNOR?

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Sashi Bajaj (NA) (27 Points)
Replied 06 August 2024

For the current assessment year, I will be resident.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 06 August 2024

Check the conditions for Resident, Not Ordinary Resident and then take decision.

For Resident Indian all the global income earned or accrued in THE FINACIAL YEAR will be taxable in India.

Yes.
Depends upon whether the income was already taxed in PY or not..

Sashi Bajaj (NA) (27 Points)
Replied 06 August 2024

Thank you for response. I have a couple of followup questions.

For assessment year FY2004-25, I was resident in India during the prior financial year. Therefore, based on your resonse above, I will be taxed for the PAYMENT received in December 2023, although it pertained to my employment of 2022. I assume this statement in strue.
For assessment year FY2023-24, for the prior financial year I had visited India on more than 180 days, however, I did not spend more than 729 days in the previous 7 finanicals years (FY2022-23 included. For this period, I understand that I will be RNOR and therefore my international income will not be taxed nor do I have to declare Foreign Asssets. Please confirm.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 06 August 2024

Yes, true; but if it was already taxed in foreign country in preceeding year, and you being RNOR for that year, no need to pay tax again in India on its receipt.
Correct, RNOR are not liable to tax over foreign income.

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Sashi Bajaj (NA) (27 Points)
Replied 06 August 2024

One final question.

For taxable year FY2023-24, I had transferred 7cr from my overseas account to my India account. However, this amount pertains to my earning from prior financial years from Singapore and Bahrain. During the same year I received a PAYMENT of about 1cr from my former employer in Bahrain for the year 2022.

For taxable year FY2023-24 I am NOR, will I be taxed on 1cr or on 7cr?