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I am not getting answer of this very normal question on the internet. I was working in the US as salaried employee and as per day count I was NRI for rear 2013 and 2014, and I paid full tax on all income I earned in US and filed Tax return.

While returning to India, I had $2000 cash as Hand-money. As per the Indian Custom rule I do not have to declare it as it is less than $5000.

Now, I have kept this money and after interval of 6 month or year whenever the USD price go up, I do exchange with Indian currency and deposit in my account. Now do I have to pay Tax on this money? I have already paid tax on this money and just keeping with me for good USD price.

And other thing what shall I show in my income tax return about this money? Very thanks.

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Now, I have kept this money and after interval of 6 month or year whenever the USD price go up, I do exchange with Indian currency and deposit in my account. Now do I have to pay Tax on this money?

No you are not required to pay any tax as the income was accrued when your were NRI for tax purposes. The Foreign currency upto USD 2000 can be held by an individual without any time limit. i.e. you can convert then whenever you want.

There is nothing that needs to be declared in Tax Returns.

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  • What about any profits on those currency transactions?
    – DJClayworth
    Commented May 25, 2016 at 13:19
  • @DJClayworth None. Hence the restriction on amount.
    – Dheer
    Commented May 25, 2016 at 16:20

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