Re: Relaxation of female and Income tax for Non resident pensioners 60 yrs above .

[Srinivasan Badri]

Please read this attachment and send to various authorities and also Retirees Associations, for this just requirement.

Many of our Retirees aged are compellelled to stay abroad with their children just for getting care etc .

But the income tax rules and FEMA are not favorable rather very harsh .

This message is very important and I humbly request all to takeup.

[MOHAN P]

From the copy of attachment it is observed that the request to DFS /RBI/CBDT is on two subjects specifically applicable to parents who travel to abroad (may be US where rules are more strict)for short stay up to six months or on green card permanently as dependents of their children)

1.To keep their pension drawing account as resident and enjoy benefits as Resident Indian Citizen.

2.Exemptions from TDS process related to change the account to NRO consequent of change in residency.

Being bankers with years of service in banks they may know very well who are Resident and Non Resident.

FEMA rules are for the benefit of citizens in general.

It seems this applicants are permanently migrated to country abroad.

A simple Declaration letter from the pensioners may not solve the matter. These are law of the land as of now.

Let us examine two situations on visit to abroad.

1.Visits the US for up to 6 months, then returns to India Does not automatically become an NRI for Indian banking purposes.

Remains primarily in India, with occasional overseas visits:

 May continue to be resident under FEMA and Indian tax rules.

2.Moves to the US to live or work there: May become non-resident under FEMA, depending on the purpose and circumstances of departure

Obtains a US Green Card:

In US immigration status changes, but this alone does not settle Indian tax or FEMA residency.

For Indian income tax, the usual test is based on the number of days physically present in India during the relevant financial year, together with certain additional conditions.

The normal threshold is 182 days in India. Other rules can apply, particularly for Indian citizens or persons of Indian origin with substantial Indian income who are visiting India from abroad. 

1. six-month US visit does not by itself mean that the person must convert a pension account to NRO. The person's actual residential status and purpose of travel matter.

2. Does he have to convert his existing pension account?

If the person remains a resident of India under FEMA, he can generally continue maintaining his resident bank account, subject to the bank's account-specific rules.

If he becomes a person resident outside India under FEMA, the RBI requires the existing resident account to be redesignated as an NRO account. 

Applicable TDS provisions at tax rules are part of the same.

This seems not to be a humanitarian issue and broadly change / deviation from FEMA rules and Income Tax rules.

Once we  choose to become a non resident naturally existing rules may apply to us.

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