r2i forum

Hello:

I am a USC and planning to R2i in the next few months. Other than my 401K account, all of my investments have been in real estate and as NRE/FCNR deposits with banks in India. I have the following questions:

(1) My company doesn't have a subsidiary in India. If I'm going to work from my home in India for my current company and if my company is willing to pay my Indian salary in US Dollars, can I receive 100% of the salary in US dollars? I read a PwC article a few years back stating that only 75% of the salary can be drawn in a currency other than Indian rupees. Is this still true?

(2) If I sell any land that I own in India, do I need to pay capital gain taxes in India and US? I heard from some of my friends that if you hold the land for more than 3 years, you may not have to pay capital gain taxes if you are a USC. Is this correct?

(3) Do I need to change my NRE and FCNR accounts to NRO accounts?

(4) Is there a good CPA in Chennai with experience in helping USC's file US and India taxes and also in tax planning?

(5) I understand that there is a $80K tax exemption for foreign earned income when you file the US tax return. Can I get the standard deductions on top of this? If my work is not working, is the $80K only applicable to me or can I take additional deductions for my wife?

(6) If I inherit mutual funds/stocks from my parents, what are the tax implications for a USC?

I will greatly appreciate your responses. Thanks a ton.

I only know the answer to #3
(3) Do I need to change my NRE and FCNR accounts to NRO accounts?

Once you are a resident in India, you are required to close out your NRE & NRO account and open a resident savings account. As per Citibank NRI office in Bangalore you are given 6 months time to do this.

RE Q#1 I am not sure of the Indian Tax on your slary, but IRS will allow a US citizen to keep 100% of your US salary as long as you are out of the country (USA) for 11 months of the calendar year.
I guess you will then have the onus of proving it as white in India!