Impact on Residency Status
Your residency status in India is determined by your physical presence in the country during the relevant financial year (FY). If you spend more than 59 days in India during FY 2023-24, you will likely be considered a Resident and Ordinarily Resident (ROR) in India for that FY. This residency threshold is expected to remain the same for FY 2024-25, assuming the current arrangement continues.
However, the extended residency thresholds may not apply if you are working remotely for an Indian employer. This requires further examination.
Tax Liability
As an ROR, your global income remains taxable in India. If you face double taxation on any income, you may be eligible for relief under relevant Double Taxation Avoidance Agreements (DTAAs).
Tax Returns Filing
You are required to file your ITR in India if your taxable income exceeds the maximum amount not chargeable to tax, if you claim any relief under DTAA, or if any other prescribed conditions are met.
SIP Taxation
From a tax perspective, the situs of mutual funds (MFs) is in India. Therefore, any income or gains earned from MFs will be taxable in India in proportion to your funding, regardless of your residency status, subject to DTAA benefits.
