Let's say that I work in the US on an L1 visa and I save up 100K USD after paying taxes in the US and I want to transfer this money to my own bank account in India and keep it there in India forever as I want to relocate back to India from the US. Will I have to pay taxes again on the 100K USD converted to INR in India? Note that, I saved up 100K USD after already paying taxes in the US. In short, will I be taxed by both - US and India? Or just one of the countries? And how much tax do I have to pay and to which country?
Simply buy ~ 2kg of gold and fly with it. (Note: This is terrible legal advice)
You can buy about 2kg of gold with $100K
You are correct. Edited. Still a very great and terrible plan.
If you setup a NRE account in India then you are exempt from taxes on earnings from investment .. Repatriation also is possible I case you need the money back in US , however in that case you will have to pay taxes in US for the amount you made from the foreign investments. Also if you transfer more than 10k to India in a given tax year , you are also supposed to notify IRS about it
This is the fullest and most accurate response
If you live in the US and have more than 10k in foreign account you will have to file FBAR with your taxes, so it's better not to transfer until you are ready to move to India
Not for the transfer. But if you invest those money you’ll pay tax on the profit.
Lets say I invest the 100 K by keeping that money in a Fixed deposit/Savings bank account in India. Is it correct to say that I'll only have to pay taxes on the interest income that I receive from it and no taxes on the principal?
Yes you are right. You pay taxes only on the interest you earn on your 100k investment