I'm a returning NRI. Will be Resident but Not Ordinary Resident (RNOR). My company asked me to work as an independent consultant (not employee, they don't have Indian entity). What is the best payment method available and also the tax implications?

As a returning NRI who will be classified as Resident but Not Ordinary Resident (RNOR), if you are working as an independent consultant in India, you may be eligible to file your taxes under the presumptive taxation scheme provided under Section 44AD or 44ADA of the Income Tax Act, 1961.

Under the presumptive taxation scheme, you can declare your income at a prescribed rate of 50% of the gross receipts. If you opt for this scheme, you will not be required to maintain detailed accounts or undergo a tax audit, provided that your annual turnover does not exceed Rs. 2 crores.

In terms of payment methods, you can receive your consultancy fee through a bank transfer or other electronic modes of payment. It is advisable to maintain proper records of all receipts and payments for accounting purposes.

It is recommended that you consult a qualified tax professional to understand the tax implications and obligations related to your consultancy income and to ensure that you comply with all applicable tax laws and regulations.

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