Any saving made on the foreign tour allowance is taxable in accordance with section 2(24) read with section 15 and section 10(14) of the Act. No deductions are allowed against the said income.

There are no tax implications when you repatriate the funds out of India. The rental income is taxable in India since it is earned in India. There is no requirement to pay tax in USA on this income.

Sale of ESOP shares after holding it over 12months is treated as long-term capital gains and if it is a listed security there is no tax on such gains from assessment year 2005-2006.

Repayment of the loan and interest is entitled to tax rebate under section 88 of the Act subject to income limits and other conditions.

1. The salary earned in Saudi from Jan to March 2005 is taxable in India for the asst year 2005-2006 since you are a resident in India for that year. There is no tax on the repatriation of funds to India.
2. You have to necessarily open a NRE or NRO account to keep the funds in India.
3. The issue of not opening a NRE or NRO account does not arise.

Since you are a resident and ordinary resident in India the global income is taxable in India. Consequently, capital gains on the sale of property in US is liable for tax in India.

Gift to friend will be treated as income and taxed. There is an exemption limit of Rs 25000. Gift to relative is exempt from tax.

You can bring back the investment from Singapore to India and there are no tax implications. The yields on these in India will attract tax depending on the type of investment.

Interest on NRE account is exempt from tax. Since you are a resident in India your global income is taxable in India.

Investment out of NRE account per se has no tax consequence. But income arising thereon like return from business is taxable.

Transfer from DP 1 to DP2 does not result in change of ownership and therefore the subsequent sale of share results in long-term capital gains and in case of listed security it is exempt from tax.

Interest arising to the Non-resident external account alone is exempt from tax.

1. First and foremost transfer of the land to a trust will entail stamp duty at 13%. Later the trust selling the land will have to pay long term capital gains tax of 20% subject to indexation of the cost of the asset.
2. This option looks better since you sell the asset in question retain the post tax proceeds in you name and use the funds to start the corpus for the trust. The constitution of the trust can be adequately structured to mitigate tax consequences.

Capital gains taxes are due on sale of property at 20% + surcharge of 10% on taxes (applicable if the taxable income exceeds Rs 850,000) and education cess of 2% (on tax +SC), if the property had been held for more than 3 years. Otherwise tax rate will be as per slab rates with 30% on income exceeding Rs 150,000. Tax liability in US on the same income will be as per US tax law and any tax paid in India should be allowed as a deduction from the taxes payable in US. However, no tax arises in US only on account of repatriation of the money there.

1. What is the procedure for being an NRI for people like me (what documents would I need to submit?)
   NRI status is dependent on period of stay outside India and if you are staying in Israel, you will be NRI. No forms to be submitted.
2. What are the advantages and limitations for an NRI resident?
   Advantages and limitations are difficult to enumerate. One advantage is Indian laws on exchange control don't apply to NRI. Limitation may be restriction on ownership of real estate in India.
3. Now do we have to choose between applying for dual citizenship ( i.e. being an Israeli citizen and Indian citizen at the same time?) and applying for NRI status or can I be both ( dual citizen and NRI at the same time)?
   NRI status is automatic as stated above. Citizenship is matter of choice and no conflict between both.
4. Lastly, will I have to pay anything to the Indian government for application as an NRI/dual citizen? If so, how much?
   The rules for applying for citizenship need to be checked with Indian immigration authorities and Indian embassy in Tel Aviv should help.

This needs to be clarified with the consulate and as such no information in public is available.

Transfer is possible. Based on secondary knowledge no US tax would arise. However this may be confirmed with a local expert.

No difference arises between sale in March vs April. The money realised need to be invested in a property (house/flat) within 3 years (two years if it is purchase of built property), if you do not own more than one house at the time of disposal of the land.
Till the money is fully invested, it needs to be parked in a special a/c in a bank and not in a general savings a/c.
The tax law will apply based on tax residency in India and not on dual citizenship.

As an ordinary tax resident in India, global income is taxable and credit for the tax paid if any in the other country would be admissible. If no tax arises in the US on the gains on disposal of the ESOPs, naturally no deduction will arise in India. Subject to a more detailed advice, as a planning the disposal may be completed before the Indian tax status is changed. Such disposal can be to a family member also.

Rupee proceeds can be deposited only in NRO a/c though this can be repatriated subsequently under the overall limits in force from time to time. No tax implication on deposit of money, though the sale of shares/ADR will attract capital gains tax.

Capital gains tax are payable in any case.

1. RNOR status carries on for 2 years.
2. Sale of foreign shares would be better during this time to avoid taxes in India.
3. Date of commencing stay in India is more critical than the date of payroll.

Transfer from DP 1 to DP2 does not result in change of ownership and therefore the subsequent sale of share results in long-term capital gains and in case of listed security it is exempt from tax.

The interest earned out of the funds in India has to be declared in the US tax returns.