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Error in the article re RNOR status
by Sandeep Shanbhag on Oct 27, 2005 01:59 PM

The article mentions that it is possible to plan your status as RNOR for eight continuous years by ensuring that you are a NRI for two consecutive years.

This is not possible since 2003 after an Ahemdabad High Court Judgement wherein it was decreed that the RNOR status can be enjoyed for a maximum of 2 years and not 8 or 9 years.

Subsequently, Finance Act 2003 amended Sec. 6 of the Income Tax Act and form 2003-04 onwards the maximum that one can maintain the RNOR status is for 2 years.

The notes on clauses of Finance Act 2003 further went on to say that this amendement is clarificatory in nature and it was always intended by the law to grant the RNOR status for a max of 2 years.

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