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.
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.
My question is related to NRI RNOR for a year.
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.
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
As I mentioned and from your details understand that I am NRI for last 10+ year, RNOR status FY 2018-19 and again NRI for FY-2019-20 as I will be maintaing 182 days. After this time when I will be eligible for RNOR status.
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.
Hi,
You are allowed to keep your RNOR status for up to 3 financial years post your return back to India.
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.
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.
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Thank you
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.
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