Total Income calculation for RNOR/NRI status

Income Tax
1

I took a job outside India last year. My total stay in India for FY 23-24 was 164 days.
I made trading (non-speculative) loss of 8L in FY 22-23 which got carried over.
FY 23-24 I made trading (non-speculative) profit of 20L.

I read in Income Tax website:
Condition for person to be classified as resident will be "120 days…if an Indian citizen or a person of Indian origin whose Total Income, other than Income from Foreign Sources, exceeds ₹ 15 lakh during the previous year. "

Will my “total income” for FY 23-24 be 20L or 12L?
If 20L, then I will be an RNOR?
If 12L, then I will be an NRI?

Note: 12L = 20L (profit in FY23-24) - 8L (loss brought forward from FY22-23)

3

Hey @bani2213,

This condition is applicable to those who primarily live outside of India and have come to visit India. In your scenario, I am assuming that you were residing in India only before you got a job outside.

In your case, as you have moved abroad for a job during the financial year, we’ll have to check only one condition, whether or not you have lived in India for 182 days or more during the financial year.

As you have stayed for 162 days, you’ll be considered an NRI for tax purposes.

Hope this helps!

4

Thanks.

As an NRI, I wont have to fill any of the following, right?

  • Schedule FA
  • Schedule FSI
  • Director in a foreign company
  • Owner of unlisted shares in a foreign company

I can leave all the above 4 sections blank?

6

For Resident but Not Ordinary Resident (RNOR) or Non-Resident Indian (NRI) status, the calculation of total income follows specific guidelines based on the Indian Income Tax Act. Here’s a basic overview:

  1. Resident but Not Ordinary Resident (RNOR):
  • An individual qualifies as RNOR if they have been a non-resident in India for nine out of the ten previous financial years, or they have stayed in India for a total of 729 days or less in the seven previous financial years.
  • RNORs are taxed only on income earned or received in India.
  1. Non-Resident Indian (NRI):
  • NRIs are individuals who do not meet the criteria for being considered a resident in India under the Income Tax Act.
  • NRIs are taxed only on income earned or received in India.

For both RNORs and NRIs, the calculation of total income includes:

  • Income earned or received in India, such as salary, rental income, capital gains, interest, etc.
  • Income earned or received outside India, which is generally not taxable in India, unless it is derived from a business controlled or a profession set up in India.

It’s important for RNORs and NRIs to understand their tax residency status and the taxation rules applicable to them, as they may have different implications for their total income calculation and tax liability in India. Consulting with a tax advisor or chartered accountant familiar with international taxation laws can provide personalized guidance based on individual circumstances.

7

As you will be an NRI, you are not required to furnish these details.

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