Q680. Tax question for a once NRI

now ordinary resident in India . . .

Question: Is earning on my saving left behind in USA is taxable in India? My savings and earning / capital gain are accumulating in USA. Please provide the non technical response. My accountant is saying is not taxable but has failed to provide the proper quote from income tax law. Thank you Ashwin Gada Answer: Your accountant may be partially right! while your USA income may not be taxable in India for some period of time, your worldwide income will eventually become taxable in India. I say this because depending on the duration of your stay abroad and visits to India you may qualify for ‘Resident but Not Ordinarily Resident’ status (RNOR) for a maximum of two or three years depending on the dates of return to India in conjunction with the financial year for taxation purposes in India. Returning NRIs who have RNOR status are taxed only on their income within India and their foreign income is exempt from taxation in India. After their RNOR status ends, they are then taxed on their worldwide income!

What is RNOR status - Indian income tax for Non

Residents

A person is said to be an RNOR if he/she meets either of two conditions: 1. He/she has been non-resident in India, that is, an NRI, in nine out of the ten previous years preceding that year, or 2. They have during the seven previous years preceding that year, been in India for a period of 729 days or less Normally RNOR status would last for two years, however with some planning in return dates taking into account the Indian financial year which is April to March, RNOR benefit can be claimed for three years.