I am working in UAE for the past 2.5 years.

I was in India when lockdown was announced and I was stuck in India for more than 6 months until flights were resumed. During lockdown I was employed and was getting salary per month.

My question is whether I'll be considered as NRI or not for FY 2020-21? Also, on what income I'll have to pay tax, is it on my total salary or the amount I'd transferred in India. This is when I'll not be considered as NRI.

Ans: The status of FY2020-21 would be NRI and the status in FY2021-22 would be RNOR (Resident but not ordinarily resident). So you need to convert the NRE to resident account immediately after returning to India. If you fail to convert your NRE account within 3 months of the return, it will be considered as a violation of Foreign Exchange Management Act (FEMA) and attract a penalty.

After you return to India, any interest earned on NRE account will be taxable. You can opt to transfer your funds from NRE account to RFC account upon return

Though there are no specific products for returning NRIs, there are a whole range of investment options available for you apart from Bank Deposits. The most common are mutual funds, bonds, stocks, insurance, etc. You can choose to invest based on factors that suit you including risk, return, liquidity, etc. Options like PPF that are not available for NRIs become available when your status changes to Resident Indian.

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: No she won't be considered a NRI as per IT for FY 22-23

Ans: Most likely, you will not have to pay taxes in India on your income earned in Dubai between May 2022 and June 2024. Here's why:

• No income tax in Dubai: The United Arab Emirates (UAE), which includes Dubai, does not levy personal income tax on its residents or even foreign nationals living there.
• India-UAE Double Taxation Avoidance Agreement (DTAA): India and UAE have a DTAA in place. This agreement prevents double taxation on the same income earned in both countries.
• NRIs and Indian taxation: Since you're working in Dubai, you're likely considered a Non-Resident Indian (NRI) for Indian tax purposes. NRIs generally don't pay Indian income tax on income earned outside India.

However, there are a few things to keep in mind:

• Indian income: This benefit applies only to your income earned in Dubai. If you have any income sources in India (rental income, investments etc.), you might need to pay taxes on those in India.
• Residential status: Your residential status for tax purposes is determined by various factors like stay duration in India. It's best to consult a tax advisor if your situation regarding residential status is unclear.

For a more definitive answer, consulting a chartered accountant or tax advisor specialising in NRI taxation is recommended. They can assess your specific situation and provide personalized advice.