Legal Question in Tax Law in India

I am somewhat confused about India's tax laws as they relate to myself and partner. We are foreign citizens here in India on student
visas and plan to live here for 2 to 4 years.
We arrived in India on July 26th, 2012 - returned to our home country on Oct 5th, 2013 before coming back to India Nov 26th, 2013.
We have 2 joint savings accounts here in India and some term deposits also. Likewise in our native country. Our only income in India and abroad is from interest earned on those bank accounts.
1. I have been told that we are not currently liable for any tax here in India and that we have RNOR status for two years which means that we do not have to declare our foreign accounts until that RNOR status changes - T/F? When will our RNOR status change?
2. If the only source of income is interest earned from bank accounts is the tax-free limit 10,000 rupees or 150,000 rupees?
3. We have used a 15G form with our FT deposits (we have PAN cards) to avoid TDS. Does this mean we do not have to pay the tax at the end of the financial year?
4. We would like to maximize the return on our savings by investing in Indian FTD with their high interest rates but have concerns about getting the money out of India when we return to our native country. Is there any problem or difficulty in closing an Indian bank account and sending our funds abroad?
It is all very confusing for us. Could you please clarify the situation for us?
Thank you
Regards

Asked on 11/30/13, 12:47 am

Jeevesh Mehta Maven Legal LLP- Advocates & Consultants

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HI,

First of all we need to know which is your country of origin. What is the annual interest you received on your saving account?

We would be happy to help you out by clarifying the above.

Regards

Jeevesh Mehta, Taxation & Commercial Law Advisor

Answered on 11/30/13, 1:47 am

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