FCNR/NRE income is not taxable till you become an ordinary tax resident of India. Normally two-year time frame would be available. This rule operates on the basis of the tax assessment years. The exemption, if applicable, will not be available beyond 31/3/07, at best. Since the applicability of this depends upon exact no of days stayed in India in preceding years etc., the generic advice given needs to get validated on specific facts.