Question By: Khurshed
Q: I am an NRI living in the US. I plan to return to India on 15th of February 2019. When will I cease to be an NRI? Will it from 15th of Feb i,e the date of my return? Also, will all the money in my NRE/NRO account become subject to tax? If I transfer say US$ 100,000 into my bank in India, will it be taxable?
If you are in India for 182 days or more in any financial year (Apr- Mar), you qualify to be a resident, else you are an NRI. Moreover, the status of NRI is for an entire financial year. Since you will come to India only on 15th of February 2019, for the FY 18-19, you would have spent less than 182 days in India and hence will continue to be an NRI. From next year (FY 19-20 onwards) you will be an Indian resident.
Your NRE interest will be taxable from the date you come to India permanently. NRO interest was always taxable.
The transfer of your capital amount of USD 100,000 will not be taxable as this has been earned in your capacity as an NRI.