I left for the USA in January 2008, and returned to India for an extended period of time on 1/2/2019 with earlier short visits of 15 days each in 2016 and 2018. I started working for an Indian company in July 2019. For the Indian tax year ending March 2019, will I be taxed on my Indian income as a resident Indian would? How will I be taxed in India on my US income accrued during 2019? How will I be taxed in India on my US income for tax year 2020-21, and 21-22?
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1 Answer
You need to understand your tax status. Immediately upon return, your status would be RNOR, https://www.incometaxindia.gov.in/Pages/faqs.aspx?k=FAQs+on+Provisions+useful+for+non+residents
Generally if you are RNOR, you would be taxed similar to NRI, only income in India would be taxed and income in US will not be taxed.
Financial year 2018-2019: NRI.
Financial year 2019--2020: RNOR.
Financial year 2020-2021: RNOR.
Financial year 2021-2022: Resident Indian. Global income will be taxed in India.Benefits under DTAA.
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Thank you. I read "Under the Income-tax Law, an individual will be treated as a resident in India for a year .." Is this year a calendar year or the Indian tax year? In general, I find that the rules are stated in a convoluted, confusing manner. Commented May 25, 2020 at 14:51
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@user2371765 it's the Indian financial year from 1 April to 31 March– DheerCommented May 25, 2020 at 16:40
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Thank you. How do I communicate my RNOR status to the Indian tax authorities? Commented May 29, 2020 at 14:02
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Thank you. If I communicate my RNOR status to the payer of my NRE account, will they know not to withhold tax? I have noticed there is often multiple interpretation with respect to rules in India. Commented May 29, 2020 at 14:21