USC OCI Tax Planning Question

[India2014]

Are you in India or still in planning phase.

[okonomi]

Has anyone come up with a way for an USC-OCI to legally avoid having to file Indian taxes/declare foreign assets after r2i? (After the RNOR period)

The only idea I have is to travel to several countries throughout the year, and never stay in India more than 180 days (or in any of the other countries for that matter)
Naive idea really, and mighty inconvenient. Anyone else has a better idea?

Let me know if there's a better thread to post this query in.




Okonomi, Malaysia has a high monthly income requirement and since I am below 50, the amount that I have to park in a bank there is less than ideal. The weather is not great either. Seemed fairly hot and humid.

Let us assume that you are going to be legit about the number of days in India, as well as your global income. As a ROR taxable person, you will find that India tax rates are higher relative to USA. Especially for someone who does not have a lot of money lying around. Tax rates of 0, 10%, 20% and 30%, and reaching the marginal rate of 30% at about US$15K is rather high. At US$15K, (adjusted taxable income for a single person), the USA's tax rate only 15%.

Visiting India during winters only would work well for the USC. If the person does not have to work for a living, it would be possible to go from India, Srilanka, Thailand, Maldives, one country for each quarter of the calendar year. For older persons this nomadic tax-avoidance travel could get quite tiresome rather quickly. Check Brunei and see if they'd take you on a long term stay. Good weather, low taxes, but then they have strict rules of life. As they say, if it ain't one thing, it is always another.