1. By May-2006 I will be having X amount in my NRE account. Will I be taxed for this in India? If not then for how many years I have this benefit? Is the tax only on interest or both on interest and the principal?
   No tax on principal at any stage. Tax on interest will arise once you become an ordinary resident in India, typically in about two years after your return.
2. I have stock options that I can exercise. If I exercise them in 2007 May and bring that money to India, will I be taxed?
   No tax in India
3. After 62 years I will be eligible for Social security. At that age assuming I'm not in US and still in India, will I be taxed for the social security benefits I receive?
   No tax on this.
4. If I work for US company in India and payroll is run in India, do I still need to pay tax in US?
   Please seek due clarification from a US tax consultant.
5. I have rental properties in India. Since I will be living here for 332 days, do I still need to pay tax on these rental properties to US?
   Please seek due clarification from a US tax consultant.
6. I have read that I will be in status of Resident but not ordinary resident. What is the advantage of that status?
   Under this status foreign sourced income will not be taxed.

No taxes will be payable on this.

No taxes should arise in India on these accretions and withdrawals to the extent it can be demonstrated to pertain to the period when you were NR and NROR. However, capital gains, interest and dividends earned in US by a ROR of India will be taxable in India. If you require a detailed legal opinion, please contact a tax advisor, as this is a complex issue.

Withdrawal of investment is return of capital and cannot be taxed as income based on the basic tenets of law. You can refer to decided cases on what is income from any of the standard text on Indian tax law. However, accretions in the form of income are taxable by the resident country under the double tax avoidance agreement between the two countries. The tax expert whom you approach for advice will help clarify the details to you.

The bank alone can clarify on the issue of rate of interest. The exemption on interest is linked to the residential status of the income earner

The withdrawal of the entire principal contributed, and accretions/income earned before becoming ROR will not be taxable in India. However the income earned upon becoming ROR can be taxed, subject to the provisions of the double tax avoidance agreement with USA.

The withdrawal of the entire principal contributed, and accretions/income earned before becoming ROR will not be taxable in India. However the income earned upon becoming ROR can be taxed, subject to the provisions of the double tax avoidance agreement with USA. PIO status is not relevant for tax purposes.

Not required. But advisable from a practical angle.

No tax on such remittances.

'Yes' to both your questions.

Upon encashing the investment capital gains may arise and be subject to tax depending on the nature of the asset sold and the period for which it was held. Repatriation is possible subject to RBI approval-normally allowed up to 100,000$.

Appears like a salaried contract. If the US co does not deduct tax, pay the advance tax to avoid any additional liability. It appears that tax would arise only in India. FIRC is a proof of forex received and is useful for claiming any tax rebates applicable. This is not necessary for computing and paying taxes.
LIC and PPF entitle you to get tax rebate. Medical and HR are tax rebated only of the same is identified in the salary component as an allowance. You can get the salary restructured suitably to maximise the tax benefits.

The transfer itself does not cause tax liability. However, depending on the residential status the check the tax liability if any on the original income.

Since in the fiscal year 05-06 your stay in India looks to exceed 182 days you will be a resident, and be liable for income earned during Apr 05. Tax paid in Norway will be available for set off. The repatriation of the saving will not attract any tax

Obligation to file a tax return arises when the total income exceeds Rs 50,000/-. Liability to tax will depend upon rebates, if any, for eligible investments etc.

If the total income exceeds Rs50,000/- tax would be payable. Reinvestment will not help to avoid tax liability.

As long as you are an NRI the pension income earned in Ireland is not taxable in India. After you become a resident in India it will be taxable in India subject to double taxation relief as applicable.

Inter-company deputation is not a taxation issue but in any case my understanding is it is legal subject to the local rules and regulations.

For the financial year 06-07 you will have to pay taxes in India on the April salary earned in Hong Kong since you will be treated as a resident in India for that financial year. For the financial year 05-06 the salary earned in Hong Kong is not taxable in India since you are a non-resident.

You will be treated as a co-owner of the property with your brother and the consideration of 12 lakhs is exigible to capital gains tax here. The exact tax will depend on the cost of acquisition of the previous owner and so on. There are exemptions from capital gains tax on account of specific reinvestment of the gains/ consideration.

Prima Facie, no tax implications. Only thing to ensure that any income earned in India is offered to tax here.

Since your stay in India in that year exceeds 182 days you will be treated as a resident in India. The income earned in Germany is taxable in India at the appropriate slab rate, the maximum being 30%. You can get set off of the tax paid in Germany on this income.

Since you will be treated as an NRI for the year under consideration the US income will not be taxable in India. You will have to pay taxes in the income earned in India.

Interest arising out of NRE account is exempt from tax in India. You may examine the tax liability under the US laws with a US tax consultant.