Guide for Returning NRIs: Tax Rules Simplified

Determine your residential status: NRI or Resident? Criteria: 182 days in India or 60 days (current year) and 365 days (past 4 years). Not Ordinarily Resident (NOR) status: If less than 729 days in India in 7 preceding years or Non-Resident for 9 out of 10 previous years.

Tax implications on overseas assets: NOR/NRI selling assets abroad may not owe taxes in India. Proceeds can be remitted without Indian tax. Taxable income in India: Income earned or received in India is taxable. Utilize Double Tax Avoidance Agreement to prevent double taxation.

Overseas income: Income earned outside and received outside India is not taxable for NOR/NRI individuals. Financial adjustments: Convert NRO accounts to regular savings upon returning. FCNR accounts can continue until maturity, then shift to RFC accounts.

Resident Foreign Currency (RFC): For Returning Indians, RFC accounts can shield interest from tax for 9 years if non-resident for 2 continuous years. Plan wisely: Understand Indian taxation and plan accordingly for a smooth return.