• NRI RNOR status

I am NRI for last 10+ year including FY 2017-18. I am still working in abroad and receiving the salary to my NRE account but FY 2018-19 I am not in position to maintain 182 days requirement because of visa issues . FY 2019-20 I will be out of India for more than 182 days so getting my NRI status is no issues. I have not filed my ITR before. My question is that can I consider me as a NRI RNOR status for the FY2018-19. If yes should I require to file ITR for FY2018-19.
Asked 6 years ago in Income Tax

Hi,

Yes, you will be considered as RNOR.

However, you will be required to file ITR only if you have earned income in India.

Your Income outside of India is not taxable in India. So, you don't need to file ITR.

Karishma Chhajer
CA, Jodhpur
2452 Answers
29 Consultations

Yes, both are the same thing.

NRI RNOR and RNOR are same.

Karishma Chhajer
CA, Jodhpur
2452 Answers
29 Consultations

Hi,

Hope you are doing well !

In your case, you will not be liable to file income tax return in India as you have satisfied all the conditions of RNOR. For Indian income tax purposes, an RNOR is treated at par with NRIs. That means, an RNOR needs to pay tax in India only on his Indian income. Any income from abroad will not be taxed in India.

Please find below the relevant provision for your complete understanding:

You will be considered Resident but Not Ordinarily Resident in a year – if you satisfy one of the two conditions for a Resident (i.e. in India for 182 days) AND

If you have been an NRI in 9 out of 10 financial years preceding the year

OR

You have during the 7 financial years preceding the year been in India for a period of 729 days or less.

As you have satisfied all the above conditions.

As you are RNOR (resident but not ordinarily resident):

a) You are liable to pay tax on the income earned in India + on the income earned outside India out of a business controlled from India or a profession set-up in India

b) You are "not taxed" on any income earned outside India

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5189 Answers
302 Consultations

Yes, above answer is related to NRI RNOR for a year.

Payal Chhajed
CA, Mumbai
5189 Answers
302 Consultations

Hi,

You can get RNOR status for 2nd and 3rd Year. Maximum you can get RNOR status for 3 years.

You can enjoy tax benefit for NRI up to FY 2020-21. After that, you will be an ordinary resident.

Payal Chhajed
CA, Mumbai
5189 Answers
302 Consultations

Hi,

You are allowed to keep your RNOR status for up to 3 financial years post your return back to India.

Karishma Chhajer
CA, Jodhpur
2452 Answers
29 Consultations

Under the Indian tax laws, taxability of any income is dependent upon the residential status of person and sources from where said income is earned.

Residential status depends on the physical presence of a person in India during the said year and also past 10 years. So considering this, you need to firstly determine your residential status as per tax laws.

If you happen to be resident in India your worldwide income is taxable in India. However, if you are non-resident or not-ordinarily resident, then only Indian sourced income is taxable. Based on your passport, you may please determine your physical presence in India for past 10 years and determine current years status.

You should file your return if your taxable income exceeds the basic exemption limit ie 2,50,000 and in case you are covered by some specific disclosure requirement. In case you are non-resident for last 9 years in 10 years you may file as RNOR. Also, the other condition of 730 days be checked.

Jasmina Jain Shah
CA, Greater Mumbai
458 Answers
4 Consultations

You are going to remain as resident but not ordinary resident for FY 2018-19 and since you are receiving salary in India for a project in India and since it's going to be above 250000 you will be required to file income tax return for FY 2018-19.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4303 Answers
101 Consultations

For F.Y. 2019-20, you will be treated as NRI if you will not be able to fulfill the basic condition. No further question if ordinary or not ordinary resident. You can call for further details.

Vivek Kumar Arora
CA, Delhi
5007 Answers
1134 Consultations

For F.Y. 2018-19, you will be treated as RNOR and you need to file ITR for income earned in india and income earned outside India due to employment. In F.Y. 2019-20, you will be treated as NRI.

Thanks

Vivek Kumar Arora
CA, Delhi
5007 Answers
1134 Consultations

Yes, you will be considered as RNOR. Whetheryou are liable to file return in India or not depends upon the nature of your income.

Please let us know what all global income you have during FY 2018-19

Lakshita Bhandari
CA, Mumbai
5687 Answers
942 Consultations

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