NRIs who are planning to return to India, enjoy certain tax benefits.
If you have been an NRI for 9 years or more immediately preceding your return
OR
You have been in India for 729 days or less during the 7 years prior to your return à
Then you are considered a Resident but Not Ordinarily Resident or RNOR for Income Tax purposes. Do note that you need to satisfy only 1 out of the 2 conditions listed above for RNOR status. The Income Tax allows RNORs to continue to enjoy exemptions available to NRIs for a period of 2 years after their return.
Therefore deposits held in foreign currency are exempt for an NRI and shall be exempt for you for 2 years when you are an RNOR.
Do plan your taxes well for these 2 years – post these 2 years, your entire Income, earned anywhere in the world shall be taxable in India.
Exemptions for Returning NRIs
Published On - December 22, 2014
