Direct Tax code- removal of RNOR status

[wd40]

Yes, thats why I also think. I just need 1 year(Fy 25-16) to be RNOR, because I will be in Singapore for Apr and May 2025 and I dont want to pay income tax on that Singapore income. Also I want to bring back my accumulated employer PF of about 1.6Cr without getting taxed in India.

You will not be taxed on principal amount you bring from overseas. If you declare I got 1.6Cr savings from Singapore, you will be taxed only on the income that amount generates in future. That law is common in all the countries except may be Dubai/Saudi.

True, but until this year I am NRI. Next FY, I will be RNOR. But lets say they remove RNOR and I jump straight to resident, how do I prove that the 1.6cr was accumulated when I was NRI and not in the FY in which I am bringing it back to India? When I am NRI, I dont declare foreign assets. I need to declare foreign assets only when I am a resident.

This is one of the reasons, I moved all my wealth to India while I was NRI. But this PF thingy I can withdraw only when I quit my job, which means after I move to India. I really hope RNOR stays for next FY, then it is straight forward, it doesnt matter I earned 1.6cr in the prior years on in the next FY, as long as I am bringing it from overseas and I am RNOR, it is tax free.

[old-spice2]

True, but until this year I am NRI. Next FY, I will be RNOR. But lets say they remove RNOR and I jump straight to resident, how do I prove that the 1.6cr was accumulated when I was NRI and not in the FY in which I am bringing it back to India? When I am NRI, I dont declare foreign assets. I need to declare foreign assets only when I am a resident.

This is one of the reasons, I moved all my wealth to India while I was NRI. But this PF thingy I can withdraw only when I quit my job, which means after I move to India. I really hope RNOR stays for next FY, then it is straight forward, it doesnt matter I earned 1.6cr in the prior years on in the next FY, as long as I am bringing it from overseas and I am RNOR, it is tax free.

Best option is this - once you move to India permanently, in the next tax filing cycle, you need to declare all your foreign assets. That becomes the baseline and you don't pay any tax on this declaration. Keep note of all your travels in/out of India as that is used to calculate your tax status. From next tax year (Apr - March), whatever interest or income this base number generated you need to declare and pay tax on it. Even if you keep all the money outside India, you will have to declare them once you become a resident Indian.

Tax dept use all kind of AI, machine learning and hi-tech stuff. Don't even think of hiding or not declaring any amount. They will catch you and levy a penalty on top of the tax. Also keep all documentation related to money transfer or big ticket purchases. If you comply with all laws life is easy.

PF is a different issue. Once you retire you can withdraw the money. Consult CA as Nirmala is levying tax on that also.