I am coming back to India after 31 years permanently. Kindly inform how many years I have exception From income tax , I have only income from bank interest in India only.
After returning to India, you will have the RNOR (Resident but not Ordinarily Resident) Status.
The NRE Deposits need not be converted to resident accounts after your return to India. They can remain as-is till maturity.
There are certain benefits of the RNOR status:
- They don’t have to pay taxes on the interest earned on Foreign Currency Non Resident (FCNR ) and Non Resident External (NRE) Deposits after converting them into Resident Foreign Currency (RFC) Accounts
- No taxes paid on withdrawals from offshore retirement accounts
- No taxes on rent and capital gains from abroad
- No taxes on interest on dividends received from investments done abroad
Since you have been abroad for 31 years, you need to check out these criteria to understand how long you can hold the RNOR Status:
- If the NRI has been outside of India for 9 out of last 10 years, he/she can be an RNOR for 1 year
- If the NRI has been in India for 729 days or less in the last 7 financial years, he/she can be an RNOR for 3 years
You can read about the top 3 tips for NRI Returning to India or click on the button below to Ask an Expert Now.