I’m an IT Consultant currently on deputation to UK.I shall be returning shortly to india. I wish to know few details like, 1) How much I can carry as Foreign Cash that need not require any declaration ? 2) When I change those currency to INR and encash/deposit to Indian account, Will that be taxable ? Krishna, London

As far as foreign currency carry to India is concerned ,the FAQ on Reserve Bank Of India website says that one is free to bring in any amount of foreign exchange but you should make a declaration to custom authorities at the time of arrival in India . The said FAQ no 24 is given as under:

24. While coming into India how much foreign exchange can be brought in?

A person coming into India from abroad can bring with him foreign exchange without any limit. However, if the aggregate value of the foreign exchange in the form of currency notes, bank notes or travellers cheques brought in exceeds USD 10,000/- or its equivalent and/or the value of foreign currency exceeds USD 5,000/- or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India

You can get the full FAQ here.

Taxation of foreign exchange

If you are non resident or Not Ordinarily Resident in the financial year of arrival in India all earnings of abroad which is is being brought in India whether in person or through bank is free of tax . It hardly matters if the foreign exchange is encashed or changed in another currency in India.