Income tax impact on returning NRI

[Mahendra Chauhan]

I was in India for FY 2024-25 for 176 days. In the previous preceding four years I was in India for more than 365 days. During FY2024-25 I returned to India on 27-November-2024. Can I claim NRI as per FEMA? If no, then can I claim tax exemption on my NRE FDs from 01-April-2024 till 27-November-2024 for the FY 2024-25, as I was outside India till 27-November-2024.

Kindly provide your advise in how to deal with above situation to save tax. Any link or documents supporting above will be appreciated.

Just for your info: my year wise days in India :

FY 2014-2015 38.00

FY 2015-2016 12.00

FY 2016-2017 7.00

FY 2017-2018 11.00

FY 2018-2019 82.00

FY 2019-2020 366.00

FY 2020-2021 365.00

FY 2021-2022 223.00

FY 2022-2023 130.00

FY 2023-2024 179.00

FY 2024-2025 176.00

(The remaining days are outside India)
 

AI Summary

Returning resident on 27 Nov 2024: whether Income Tax Act s.6 determines NRE interest exemption and FEMA NRI status A taxpayer returned to India on 27 November 2024 after substantial prior overseas residence and asks if FEMA NRI status or NRE FD interest exemption applies for FY 2024-25. Respondents note FEMA's residency hinges on the entrant's intention (returning permanently versus temporarily), while tax treatment of NRE interest is governed by Income Tax residential status. If the person returned 'for good' they may be resident under tax law and thus ineligible to claim NRE interest exemption for the full year; if treated as non-resident for tax purposes for that fiscal year, NRE interest may remain exempt. The key issue is determination of residential status under the Income Tax Act, not FEMA alone.