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Tax laiability of NRI ( budget 2020)

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abdul muneer

nmn

23 Points Posted on 04 February 2020

Dear Friends, i would like to get answers for the below questions...

1 - An NRI who stays more than 120 days (as per new budget) will become resident in India , how will his global income be assessed ?

2- whether his NRE a/c balance treated as global income and to pay taxes ?

3- What is the tax calcualtion on seaman (merchant navy) and contract employees who normally stays more than 120 days ?

Replies (2)

Quick Summary

This discussion clarifies the tax implications for Non-Resident Indians (NRIs) following India's Budget 2020. It addresses how staying over 120 days can change an NRI's residency status and impact the taxation of their global income. The conversation also covers the tax treatment of NRE account balances and specific scenarios for seamen and contract employees.

Sreeram

22 Points Posted on 04 February 2020

Q1) yes if he stays for more than 120 days in india he will be considered as resident

Q2) Upon becoming resident, one has to declare chang in residential status as per IT act to bank to make change to nature of deposit from NRE to domestic, consequently interest income will be subject to tax

Q3) one will be taxed on global income earned from or originating from an entity in India

abdul muneer

nmn

23 Points Posted on 05 February 2020

Thank you Sreeram, once the NRE become resident how the income (other than interest income) calculated ? will his full bank balance considered as total income for that year ?