Income Tax Consultant in Besant Nagar, Chennai

When you return after years abroad, you usually do not become an ordinary resident straight away. Depending on how many years you were non-resident and how many days you spent in India before returning, you may qualify as resident but not ordinarily resident (RNOR) for a transition period, commonly up to two or three years. During that window, income that arises outside India and is not connected to an Indian business is generally not taxed in India, and the detailed foreign asset schedule in the return does not apply.

Once you become an ordinary resident, your worldwide income is taxable here and every foreign bank account, retirement account and shareholding has to be reported each year, even if it earns nothing. We map your exact days in India for the past years, work out your status for each tax year, and plan when to close, keep or move foreign accounts. For the wider picture, see our NRI tax services page.

Foreign pensions and employer shares are where returning residents most often go wrong. A pension paid from abroad may be taxable in India once you are an ordinary resident, while the paying country may also withhold tax; the tax treaty between India and that country decides who taxes it first and how credit is given. Claiming that credit requires a separate statement filed before the return, and missing it can cost the credit altogether.

RSUs that vested while you were abroad were usually taxed as salary there. When you later sell those shares as an Indian resident, the gain is computed from the value on which you were taxed at vesting, and the holding period runs from vesting. Unsold shares and the overseas brokerage account must be shown in the foreign asset schedule once you are an ordinary resident.

For households that are not dealing with foreign income, the work is usually a clean income tax return filing each year, with care around rent, interest and capital gains, and a choice between the old and new regimes. Larger or more varied portfolios, multiple properties and family members filing together are covered on our income tax consultant for high-income individuals and families in Chennai page. If you have already received a notice, start with income tax notice replies.

Residents who are setting up a consultancy or family company after returning can also use us for private limited company registration. Neighbouring Adyar has a strong base of professionals and institutions, covered on our chartered accountant in Adyar page. The Income Tax Department explains residential status and which return applies on its return applicability help page (incometax.gov.in). To discuss your own position, contact us.