Foreign Income getting Taxed in India. RNOR Status

Hi,

As regards your query above please note that an individual qualifying as a ‘NR’ or ‘RNOR’ is not liable to tax in India on his foreign incomes (unless received in India). 

As you plan to moved back to India,you will qualify as RNOR,  if your presence in India is 729 days or less during the period 1 April 2016 to 13 March 2023 or  you qualify as NR of India in 9 out of 10 preceding FYs.

As an RNOR, you are taxable on following incomes in India: 

• Income received or deemed to be received in India; 
• Income that accrues or arises in India; 
• Income deemed to accrue or arise in India; 
• Income accruing or arising outside India from business or profession set up in India 

So basically any income shall be liable to be taxed in India if any of the above conditions are fulfilled in case of an RNOR.

In your case unless the foreign income is not received in India it shall not be taxable in India.

Hope this helps.

Please reach out in case of any further query.

Thanks

Yes,there will be no change to this as this is as per the basic charging section (which talks about the changeability) of the Income Tax Act 1961.

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

Thank you.

You will be RNOR for FY 2023-24 as no. of days you were present in India during 7 years preceding 2023-24 is less than 729 days. In such case income from employment from April 23 to sep. 23 would not be taxable in India. Further if you spend less than 182 days in India in FY 2023-24 then you would be treated as NRI and in such case only Indian income is taxable.

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Your understanding is correct based on the information provided. If you qualify as a RNOR (Resident but Not Ordinarily Resident) for the financial year 2023-24, you can potentially avail tax exemption on your foreign income earned in Germany from April 2023 to September 2023. Here's a breakdown of the points you mentioned:

1. RNOR Status for FY 2023-24: You meet the criteria for RNOR status for the financial year 2023-24 since the number of days you were present in India during the 7 years preceding FY 2023-24 (April 2016 to April 2023) is less than 729 days.

2. Tax Exemption for Foreign Income: As an RNOR, your foreign income (in this case, income earned in Germany from April 2023 to September 2023) would likely not be taxable in India. RNORs are generally only taxed on income earned or accrued in India.

3. Possible NRI Status: If you spend less than 182 days in India during FY 2023-24, you could be treated as a Non-Resident Indian (NRI) for that financial year. In such a case, only your Indian income would be taxable in India.

You are RNOR if you have stayed in India for more than182 days but you were non-resident in 9/10 PYs or you have not stayed India for more than 729 days . In that case your German income would not be taxable

Since you are a RNOR your global income won't be taxed and only your Indian income would be taxed.

Considering the above facts your income which had accrued and you have earned in Germany won't be taxed in India.

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

Thank you.