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I am an NRI and was living in Australia for the past 11 years. Since July, I have been living in India. Recently, I got a job here. Please tell me how I should file my taxes next year?
— Name withheld on request
To find out whether you are liable to file a tax return in India, you must establish your residential status in India.
You must meet any of the following conditions and both the additional conditions:
Conditions: a) You are in India for 182 days or more in the FY; or b) you are in India for 60 days or more in the FY and 365 days or more in the four preceding FYs.
Besides, an individual who is a citizen of India who is not liable to tax in any other country or territory has total income, other than from foreign sources, exceeding ₹15 lakh during the said FY, shall be a deemed resident of India.
For a citizen of India or a person of Indian origin, who comes on a visit to India, the 60 days are considered changed in the following manner in. If total income, other than income from foreign sources, exceeds ₹15 lakh, the 60 days are substituted by 120 days; in any other case, the 60 days are substituted by 182 days. Such persons are considered as deemed residents.
Additional conditions: you are a resident in India in two of the 10 FYs preceding the relevant FY; and you are in India in the seven years immediately preceding the relevant FY for 729 days or more.
If you meet any of the first set of conditions and both the additional conditions, you shall be considered a resident in India. If you meet any of the first conditions but do not meet the additional ones, you shall be considered a resident but not ordinarily resident in India. If you do not meet any of the first conditions, you shall be a non-resident in India.
Even though you meet the first condition since you are likely to be in India for 182 days or more, you are unlikely to meet any additional conditions. Therefore, you shall be a resident but not ordinarily resident in India. In such circumstances, only the income which has been earned in India shall be taxed in India and shall have to be reported in your return to be filed in India. Check for compliance with rules of another country where you may be resident for tax purposes for the said FY.
Archit Gupta is founder and chief executive officer, Clear.in.
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