Returning nri what happens to your nro, nre and fcnr accounts personal finance plan easy ways to make quick money

Moreover, there is compliance with FEMA (foreign exchange management act) and the income tax act to be taken care of. I can’t cover all the questions in a single post. In this post, I will limit the discussion to bank accounts. What happens to your NRI accounts (NRO, NRE, and FCNR) when you return to india? Do note the post is about nris who have returned easy ways to make quick money to india with an intention to stay back (and not for a temporary stay). What happens to my NRO, NRE and FCNR accounts?

Interest on NRE accounts/deposits (re-designated as resident rupee account/deposit) becomes taxable on your return. If you transfer the balance to RFC account, the interest income will become taxable or exempt as per easy ways to make quick money rules for RFC account. There is some confusion among investors that interest on NRE easy ways to make quick money fixed deposits is always exempt from tax. Therefore, they somehow want to continue their NRE deposits. However, this is a misplaced belief. As per section 10 (clause 4(ii)) of the income tax act, NRE interest is exempt from tax only for those who easy ways to make quick money qualify as NRI as per FEMA. Since, as per FEMA, you become resident from day 1 of permanent return, you cannot hold NRE deposits. Even if you do, the interest on such NRE deposits is taxable. Therefore, there is no point in continuing those NRE accounts.

Eligible assets are assets acquired by the person abroad while easy ways to make quick money the person was a non-resident. Such assets would include deposits in banks outside india, investments in foreign currency, shares or securities or immovable properties outside india, investment in business and foreign exchange earnings through employment, business or vocation. Eligible debits to RFC account

FY2018 (ending march 31, 2018): since you have been in india for more than 182 easy ways to make quick money days (365 days), you qualify as a resident for FY2018. But which type of resident? You were non-resident for 8 out of 10 previous years (FY2008 to FY2017) preceding that year (FY2018). The condition is not met. However, there is an additional condition. During 7 previous years (FY2011 to FY2017), you were in india for 670 days (305 in FY2016 + 365 in FY2017), which is less than 729 days. Hence, you are RNOR.

FY2019 (ending march 31, 2019): since you have been in india for more than 182 easy ways to make quick money days (365 days), you qualify as a resident for FY2019. But which type of resident? You were non-resident for 7 out of 10 previous years (FY2009 to FY2018) preceding that year (FY2019). The condition is not met. However, there is an additional condition. During 7 previous years (FY2012 to FY2018), you were in india for 1,035 days (305 in FY2016 + 365 in FY2017 + 365 in FY2018), which is more than 729 days. Hence, you are ROR.

Disclaimer: this is a very simplistic representation of FEMA and income easy ways to make quick money tax act. Many aspects have not been included to keep the post easy ways to make quick money simple. You are advised to consult a tax advisor before making easy ways to make quick money any decisions. The post is based on my interpretation of FEMA and easy ways to make quick money income tax act. If you don’t agree with any of the points, do leave your observations in the comments section.

I have a different take on this. Continuation of contracted rate is applied till maturity for NRE easy ways to make quick money fds, even when one returns to india. However, the interest on this is taxable. Now our banks work processes in their computer system are easy ways to make quick money not set up for returning indians (may be they all have assumed that no one ever easy ways to make quick money returns). Due to this, it is allowed to continue it as NRE fds. (even RBI site shows that it may be allowed to easy ways to make quick money continue till maturity, but IT rules state that the interest are taxable). So the banks follow their own procedures, as all of them are set up for non deduction easy ways to make quick money of tax from NRE deposits and resident indians cannot have easy ways to make quick money NRE accounts (contradiction). Banks like HDFC take it in the background and get easy ways to make quick money an undertaking that the depositor takes full responsibility for the easy ways to make quick money taxation and they continue to treat it as NRE FD. Banks like SBI, if the officer is alert enough transfers it to resident easy ways to make quick money account department,, while calling it still as NRE FD, and manually calculate the 10% tax once in a year as TDS and transfer it easy ways to make quick money to the IT department, of course with the undertaking from the deposit holder on easy ways to make quick money his tax liability. ICICI insists on closure of the NRE fds and reopening easy ways to make quick money at a new contracted rate. So simply put, the banks are not set up to handle returning nris easy ways to make quick money vis-a-vis their fds

I have NRI status since last 8 years from apr-2008 till mar-2016, maintaining single NRE A/C and concerned fds. No investments in foreign currency, and property at abroad. Now in this 9th year; I will be returning to india permanently by 30th jul-2016 with no intentions to come back abroad (gulf countries) again for the job in near future.

(2) I expect to have some cash flow and final settlement easy ways to make quick money amount later to be transferred in my NRE A/C by end of dec-2016. As I will be returning to india permanently by 30-jul-16; can the NRE A/C be kept in operation / in same status till dec-2016 without informing bank about – especially when few of my NRE fds will be matured easy ways to make quick money by nov-2016 ?

(4) in this typical case, I don’t see much benefit in opening RFC (US dollar) account and convert NRE A/C balance amount and later fds on maturity into RFC easy ways to make quick money account (RFC USD account interest rate is up to 1.5% for 1 to 2 years term deposit). I will be carrying RNOR status for 2 years (2016-17 and 2017-18) only. The interest gain (net income)from NRE fds converted into normal resident fds (though taxable) are more beneficial in terms of financial gain than returns easy ways to make quick money from RFC account/deposits. Your comments please.

I came back to india in december 2015 after working easy ways to make quick money in gulf for about 36 yrs though I have been easy ways to make quick money regularly visiting india for abot 10 days to a month easy ways to make quick money per year as my aging parents were residing in mumbai. Soon after that in FY 2016-2017 I took my wife for extensive tour to some easy ways to make quick money of the gulf countries,canada, europe and USA, eventually, I happened to be out of india all together for easy ways to make quick money 197 days, would it suggest me be an NRI for FY 2016-2017 ? Having learnt that by staying out of india more than easy ways to make quick money 183 days one can continue to be an NRI and easy ways to make quick money my NRO,NRE and FCNR accounts be considered to enjoy NRI benefits easy ways to make quick money ? Or do I have to disclose the concerned banks (all nationalized) about my return and file IT return as resident unlike easy ways to make quick money I filed the last year as NRI disclosing all my easy ways to make quick money deposits to IT department. Furthermore the banks wherein I maintained fixed NRE INR deposits easy ways to make quick money and FCNR USD deposits revealed they would continue my deposits easy ways to make quick money till they mature with the contractual term like period of easy ways to make quick money 5/10 years and rate of interest till their maturity. One bank manager fave me in writing disclosing it will easy ways to make quick money be tax free and bank will not deduct any TDS easy ways to make quick money on them. For my FCNR deposits they assure that on maturity they easy ways to make quick money will convert them on my request to RFC USD and easy ways to make quick money those can be renewed then on every year. NRE INR deposits with the referred banks will earn rates easy ways to make quick money that has been contracted till it maturity like 5 yrs easy ways to make quick money and 10 yrs and there won’t be tax deducted from them till maturity. Of course, my NRO and NRE will be converted into regular resident easy ways to make quick money S/B accounts. What would you advise me to do? And as I stayed from 11th dec 2015 till 31-3-2016 in mumbai and in FY 2016-2017 april month I was away for a month and easy ways to make quick money in all, precisely 197 days for the FY 2016 – 2017 I happened to be out of india then will easy ways to make quick money I be an NRI for the referred year FY 2016 easy ways to make quick money -2017 and NROR for FY 2017 – 2018 and 2018 -2019 ? Please give your understanding on this issue of mine.

Q1. During the FY 15-16 my FCN deposit was matured in december 2015 and easy ways to make quick money was auto renewed under the same FCN number upto 2018. My question is since i being a RNOR whether the easy ways to make quick money entire interest earned on this FCN deposit will be exempt easy ways to make quick money from tax or only the interest upto december 2015. And if the interest on FCN deposit from december 15 easy ways to make quick money to 31/03/16 is to be taxed i.E. On the auto renewed FCN deposit, then what should be taken as the rate of conversion easy ways to make quick money for the interest earned between december 15 to 31/03/16?

Q2. Can i go to my bank tomorrow and open RFC easy ways to make quick money account and transfer my NRE FD’s and claim than interest earned on RFC from the easy ways to make quick money date of transfer to 31/03/17 as exempt since i being an RNOR? Is there any time limit for opening a RFC account easy ways to make quick money and claiming the benifit of tax free interest after returning easy ways to make quick money back to india and being and opting as RNOR i.E. As long as one can opt for RNOR(2 or 3 years). Or can i open and RFC account in my second easy ways to make quick money year as RNOR and claim the benifit of tax free easy ways to make quick money interest.

Here I am returning after more than 6 months, to inform you about my success in getting confirmations from easy ways to make quick money all 8 banks with whom I have NRE fds, stating that they now have systems in place to re-designate NRE fds as resident fds, without making any other changes in tenor or rate of easy ways to make quick money interest, and subjecting the interest accruals from date of re-designating to TDS.

Some banks were adament in their approach and practice of easy ways to make quick money advising the returning nris to prematurely close NRE fds (simply b’cause their core banking system did not have provision for easy ways to make quick money re-designating the accounts), despite mandatory instruction vide clause 4.9( PART II) of RBI master directions, making it obligatory on them to re-designate them as resident fds, with no specific leverage to insist on premature closing.

I had to persistently put pressure on each branch manager easy ways to make quick money and finally cautioned them that I would escalate the matter easy ways to make quick money up to their chairman, and thereafter to banks ombudsman, RBI and IT dept if required. So 7 banks caved in between 16.09.2016 to 20.02.2017. Only one bank had instantly agreed on 25th aug 2016. I kept cool for 3 months from nov 2016 to easy ways to make quick money jan 2017 in view of their involvement with demonetization issues. I can forward more details like the banks’ confirmatory emails, if you can kindly provide me your email.

I was working in china during jun-2013 to sep-2016 on australian project work hired by US company. I was working on rotation of 11 week on 2 easy ways to make quick money week off. During off period usually I came to india to visit easy ways to make quick money my family. I receive all my pay in NRE account during that easy ways to make quick money period in USD. I had paid all my taxes due to china per easy ways to make quick money rule in china. I have also made NRE deposits in INR from fund easy ways to make quick money received as pay in my NRE account. Now I am return to india in sep-2016 and informed my bank for same on current status. Bank is suggesting me to close the existing account but easy ways to make quick money I have NRE FD’s linked with account hence I suggested them to convert easy ways to make quick money the account status to resident status instead of closing it easy ways to make quick money so future maturity will credited to sam. Meanwhile my NRE FD’s are also maturing every month which upon maturity I easy ways to make quick money immediately transfer it to my regular saving account together with easy ways to make quick money interest. How should I calculate the tax on my interest income easy ways to make quick money on NRE FD’s already matured and future maturity belongs to next year?

Sir, I had an NRE a/c in SBI, in which I had three NRE fds to be matured easy ways to make quick money in 02/2016, 07/2016 and 11/2016, I came back in 07/2015 and in 02/2016 I informed the SBI that I had come back easy ways to make quick money india in 07/2016 so that my NRE status of the a/c may be changed accordingly (as the NRE status of the a/c remained valid after six months of return to india). Immediately they changed the status of my NRE a/c to normal S/B a/c. I was outside my hometown. Just before maturity of the fds, SMS came from the bank that your FD is going easy ways to make quick money to be matured, either you instruct the bank or the same would be easy ways to make quick money rolled back to the original term. I could not respond to the SMS. I came back to my hometown in 06/2017 and encashed all the three NRE fds. I have seen that the bank has given me an easy ways to make quick money interest of approx. Rs. 45,000/- (for the period from 02/2016 to 06/2017) over the matured value of the FD which had been easy ways to make quick money matured in 02/2016 while no interest was paid to me for the easy ways to make quick money matured value of the other two fds which were matured easy ways to make quick money in 07/2016 and 11/2016 (only the matured value was given). On query, the bank has said that as the other two fds easy ways to make quick money were encashed before one year (minimum) period, no interest was paid.

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