I was in the US for a few years and didn't close my savings and checking accounts in the US at the time of return. After three years of my return from US, I transferred some funds to my savings account in India. Am I liable to pay any taxes in India? Do I need to declare these funds while filing income tax return in India? Please advise. Thank you.
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1 Answer
Transferring your own money from USA to India does not create taxable income for you in India, assuming, of course, that you transferred the money via normal banking channels (wire transfer or paper demand draft/cashier's check or your own personal check deposited into your account in India or money transfer service such as Xoom) and didn't just show up at your Indian bank to deposit a satchel full of cash received via hawala channels. You do, of course, need to close down your bank accounts in the US some time soon (I think you are allowed to keep them for up to seven years after losing NRI status).
answered Mar 7, 2019 at 15:17
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Thank you for your inputs Dilip. Yes, I used Xoom and other money transfer services to transfer the money. I understood that it won't be taxable income however do I need to declare in my income tax return? Please share your thoughts. Thank you.– AdityaCommented Mar 9, 2019 at 15:59
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How did you get the money that you transferred from US to India in the first place? Was it your own money from India that you transferred to the US when you first arrived in the US? Was it the leftovers from salary or wages received in the US after US taxes had been deducted and you had paid all your living expenses in the US? Either way, the money in your US accounts is your money and it does not become income (not in the US and not in India either) when you transfer the money to India and convert the US dollars into Indian rupees. Commented Mar 9, 2019 at 16:06
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It was my savings from my salary. and yes, all taxes were paid in US on these earnings. Thanks for your inputs.– AdityaCommented Mar 11, 2019 at 14:24