Residential status and taxability of income for NRI

chethan   October 17, 2022

I am moving to Bahrain for job in december and planning to stay there for few years. WIll i be considered as NRI for the tax purpose , as i am staying here till december? and i am not considered as NRI will i have to pay tax on the income earned in Bahrain?

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Answer: Tushant   October 17, 2022

Tushant   October 17, 2022

Answer:

You will be considered as Resident in India since you are staying in India for more than 182 days. And now assuming you are fulfilling other conditions: 

  • You have been a resident in India for more than 2 years in last 10 years, AND
  • You have stayed in India for more than 730 days in last 7 years

you will be classified Resident and Ordinarily Resident (ROR) and accordingly all the incomes will be taxable in India.

However, after obtaining status of Non-resident (NR) only income that is received or earned will be taxable in India.

You can refer the following article for more details : https://taxninja.in/blog/residential-status-of-an-individual-as-per-the-income-tax-act-1961

You can also refer our Resident Status Calculator to determine your status : https://taxninja.in/residential-status-calculator

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