I am working in Dubai at an MNC company since May 2022. I am thinking of coming back to India this year. Will I have to pay any tax in India on the income that I have earned in Dubai between May 2022 and June 2024?

Ans: An NRI's income taxes in India will depend upon his residential status for the year. If your status is 'resident', you have to pay the income tax in India; if you are a non-resident, then you need not pay the income tax in India.

Any income that you get in India (eg. On investments, rental, etc) would be taxable in India. Whether you are a resident or non-resident you have to file ITR if your income exceeds Rs. 2,50,000 or if you have short term capital gains.

Ans: If you don not follow the rules for an NRI as per the IT Act for FY24 , then you will be residential individual and not a NRI due to which all the income will be taxable.

Ans: Based on the information you've provided, it's highly unlikely that you'll have to pay income tax in India on the salary you earned in Mauritius.

Understanding the India-Mauritius Double Taxation Avoidance Agreement (DTAA)

India and Mauritius have a DTAA in place to prevent double taxation.

This means that income earned in one country is generally not taxed in the other.

Key points to consider:

• Resident status: As you've been working in Mauritius since 2020, you're considered a tax resident of Mauritius for those years.
• Income earned in Mauritius: Your salary earned in Mauritius is primarily considered foreign income and is generally not taxable in India under the DTAA.
• Returning to India: When you return to India, you'll become a tax resident of India. However, this change in residency will not automatically trigger tax on your past income earned in Mauritius.

Potential Considerations:

While the DTAA generally protects you from double taxation, it's essential to consider these points:

• Specific circumstances: There might be specific circumstances, such as the nature of your employment or other income sources that could affect your tax liability.
• Professional advice: It's always advisable to consult with a tax professional to get personalised advice based on your specific situation.

To be completely certain about your tax obligations, it's recommended to seek guidance from a professional tax consultant in India for tailored-made advice based on your income, employment details and other relevant factors.

By understanding the DTAA and seeking professional advice, you can ensure compliance with Indian tax laws and avoid any unexpected tax liabilities.

Ans: Tax Implications on Returning to India from Nigeria

Understanding Your Tax Residency

The primary factor determining your tax liability upon returning to India is your residential status.

• Non-Resident Indian (NRI): If you stay outside India for more than 182 days in a financial year, you're generally considered an NRI. Income earned outside India is typically not taxable in India.
• Resident but Not Ordinarily Resident (RNOR): You might fall into this category if you meet certain conditions regarding your stay in India in the past four years.
• Resident and Ordinarily Resident (ROR): If you've stayed in India for more than 182 days in the current financial year and at least 365 days in the previous four years, you're generally considered ROR. Your global income is taxable in India.

Potential Tax Implications

1. Income Earned in Nigeria:

• If you're an NRI when you return, income earned in Nigeria is generally not taxable in India.
• If you become ROR, your entire global income, including income earned in Nigeria, becomes taxable in India. However, you might be eligible for foreign tax credits to avoid double taxation.

2. Foreign Assets:

• You might need to disclose foreign assets and income in your Indian tax return.
• Specific reporting requirements and thresholds apply.

3. Repatriation of Funds:

There might be restrictions or reporting requirements for bringing foreign currency into India.

Important Considerations

• Tax Treaties: India has tax treaties with several countries, including some African nations. These treaties can impact your tax liability.
• Proof of Stay: Maintaining records of your stay in Nigeria, such as visa stamps, flight tickets, and accommodation details, is crucial for tax purposes.
• Professional Advice: Given the complexities involved, consulting with a tax professional is highly recommended to ensure compliance and minimise tax liabilities.

To determine your exact tax obligations, you should provide more details about:

• Your specific stay periods in India and Nigeria
• Nature of your income in Nigeria
• Amount of funds you plan to repatriate
• Any assets or investments held outside India

By gathering this information and consulting with a tax expert, you can effectively plan your tax affairs and avoid potential issues upon your return to India.

Disclaimer: While I can provide general information, it's crucial to consult with a tax professional for personalised advice based on your specific financial situation. Tax laws can be complex and subject to change.