Q.807 Tax after moving back to

India . . .

Question: Dear Sir, I was born, studied and worked in India before moving to UK in 2006 I have acquired British Citizenship and had to renounce Indian citizenship in 2014. I have however moved back to India this month (2015). I want to understand if the following documents which I had got before I renounced my Indian citizenship are valid OR if I have to reapply? 1. Driving License acquired in 2002 valid till 2022 2. PAN Card acquired when I was an Indian citizen back in 2003 3. Adhaar card Also, I want to understand , is there a difference in the below as compared to Indian Citizens 1. Taxation 2. Pension contributions Regards Nagashankar Answer: I am assuming that you have now moved back to India to live perhaps with OCI or a long term visa. Regarding your questions: 1. Driver license should remain valid until expiry date. Any changes such as your address in India where you currently live should be updated as per rules in India. A foreign address cannot be used for Indian driving license. 2. PAN Card is also issued for life. An individual can have only one PAN Card. Any changes such as address etc can be made online. 3. Aadhaar Card is also for life As regards to other issues such as taxation, when a non-resident returns to India for settlement they have some tax exemptions available to them that may help avoid taxation for two or three years* of their foreign income. Initially only income from within India is taxed. [* depending on the duration stay abroad and dates of return to India in connection with the tax financial year in India.]

Taxation after moving back to India

from abroad

A person is considered a resident for taxation purposes in India if: 1. In India during the financial year for a period of 182 days or more. Or 2. In India for a period of 60 days or more during the year and 365 days or more during four years immediately preceding the year in question. If either of the above two conditions apply then the person is considered to be a resident for tax purposes in India. Once an NRI becomes a resident in India for tax purposes, they should determine if their foreign income is exempt from Indian taxes. In addition to the ‘Resident’ category their is also a Resident but not Ordinarily Resident (RNOR) category. Returning NRIs who qualify for RNOR are taxed only on their Indian income and their foreign income is exempt from Indian taxation as long as they continue to qualify for RNOR status A person is considered to have RNOR status if either of the two conditions apply: 1. Been non-resident in India in nine out of the 10 previous years preceding that year; Or 2. During the seven previous years preceding that year been in India for a period of, or periods amounting in all to, 729 days or less. If any of the two conditions apply then such a person would qualify for RNOR status and their foreign income would not be taxable in India. Summary: • Ordinary Resident: World wide income taxable in India. Use Double Tax Avoidance Agreements (DTAA) to minimize tax if paying taxes in both countries. • RNOR Status: Foreign income exempt from tax in India. Tax needs to be paid only on Indian income You need to be more specific regarding your question on pension contributions.