Love this channel for its simplicity and being straight to the point. As the tagline ways "No hype. Just the right advise". Bhat sir asks the right questions too. Thanks to CA Sriram. 👍🏼
Thank you Sir so nice to see an info-channel of this kind with very relevant concerns/questions being answered. I just happened to stumble upon on this site and so glad i found the information sought here.
Deeply appreciate this wonderful and informative content. The FY 2020 21, I am sure, Govt will be will be considerate to the NRIs who returned for short duration but couldn't perform their journey back due to Covid restrictions on international flights / Expiration of Visa during the intervening time / Temporary Suspension of visa by the host country etc. Clearly the intent is to get back to the host country. Such NRIs probably will be able to go back in next couple of months. I want to believe Govt will not enforce FEMA act on these individuals as this is an unprecedented force majeure ( act of God ) situation . However It is important FEMA consequences are clarified as was promised by the host of this video channel. This is such a grey subject that even qualified CAs have to do some research before commenting on the subject. Once again thank your for this enormous effort and would look forward for your next video on the Consequences part of FEMA.
I am also still looking for the answer as some individuals got stuck in india due to lockdown and lost the job of such a extended leave. What is govt saying on their residential status? It would be great help if Bhat sir Shriram Sir kindly clarify this point. Thanks again for informative video.
I am keen to watch all your queries / program. I also take the liberty to circulate this to all my friends. Many many thanks for such a informative program
Thanks for this wonderful video. I see unfair ruling by RBI and here is why I feel so. Before I became an NRI, I opened fixed deposit accounts, interest were taxed. Over a period of time (many years) the FD has renewed few times and during these many years my residential status has changed to NRI. Now these FDs should be considered NRE and hence should be exempted from the income tax. My request is based on the same logic(RBI) where NRE FDs are getting taxed upon we returning back to India and loosing NRE status. Nutshell- IF loosing NRE status allows indian gov to tax NRE FDs THEN gaining NRE status should exempt previously opened FDs from the income tax.
Your understanding is wrong. FD opened when you were NOT an NRI will remain as it is. NRE FD can be opened only with the money earned from OUTSIDE India. By your logic a person with 10 Crore fund moves to Dubai and start a pan shop there, all his money will become NRE and interest earned will be tax free. He may be getting 50 to 60 lakhs per year interest and normal tax will be 15 to 20 lakhs. By your logic he can save the tax and spending half of it can live in Dubai.
Normal Fd becomes Nro fd, if you submit you nri détails in your bank. How ever both are taxable in india. But if you wish to convert nre fd, you need a CA certificat.
Dear Sriram, I am happy that I already got the relevant answers for the questions I posted a while ago, by strolling thru the several trailing comments below by various individuals along with your respective comments on RNOR. Anyways, I am going to leave my earlier comments "as is" so that any new watchers (like me) can benefit from these comments...
Well explained about NRI & Resident status, but I request to explain about the intermediate stage of RONR Status and applicable FEMA and Incometax provisions on NRE/NRO Accounts and taxation provisions. Thank you.
Thanks a lot for the information. Can we ge the same type of information regarding Demat accounts pertaining to a NRI who is coming back to India permanently.?
Wow - another fantastic video. Many accolades to CA Sriram's loads of knowledge on taxation and confidence during his explanation. The video is mainly focused on NRI's returning to India and still maintaining NRE accounts which somehow results in evading the tax. How about Resident Indian converted to NRI but still maintaining all his Resident Fixed deposits & sending money from Foreign to Resident Indian account, If he is filing the tax every year correctly - what would be the consequences? During filing the tax, will there be any queries or rejections by Income tax department? Also If the resident Indian who recently became NRI has multiple Resident accounts in India but he has only converted his one main account frequently used by him to NRO and NRE account. will there be any issues to continue maintaining less frequently used Resident accounts without the conversion? When does the actual issue by the various departments will be raised (Is it during Income tax filing?). What are the consequences in all these scenarios as per the Indian law?
Thank you. It was very informative. Clears a lot of doubts. Another point too be clarified is..... In the event of a Joint Account, if one account holder becomes a resident Indian, what status applies -- Resident or Non Resident⁉️
*Scenario 1: If the First applicants status changes to Resident Indian, then the account will need to be converted to Resident SB account. And the joint applicant in this account continues to be NRI, then the account mode of operation can be changed to FORMER OR SURVIVOR. * Scenario 2: if the primary Applicant continues to be a NRI, but, the joint applicant's status changes to Resident Indian, then the Customer id status of the joint applicant will need to be changed to Resident Indian status, and change the mode of operation of this NRE / NRO account / deposits to FORMER OR SURVIVOR. Hope this clarifies
Please tell about ppf account of NRI - opening of PPF account before NRI status, operation of PPF account after NRI status but before maturity of PPF account, closing of PPF account after maturity of 15 yr when NRI status.
Very very nice information to all NRI community. Presentation is very simple and understandable. Please keep updating with all laws and new ammendments related to NRI. What will be the status of LIC policy started before changing status from Resident to NRI while opening NRI account. Should it be closed or continue till maturity.
Dear Sir. Thanks for your reply which is much appreciated. To be honest, an Indian should not even have an NRE account. It may earn interest in India but this interest is taxable in the country where one is living ( I mean abroad ). Transferring NRE funds abroad is a big headache. I have been through it 7/8 times and I know how it feels. I regret opening NRE accounts.NRO account is a better option tax is deducted at source and is refundable if one qualifies for it. Of course, IT return has to be filed by a CA ( fee will be charged )and it takes months to get the refund. Opening NRE and NRO accounts may be easy for some but I shall not recommend them.As for sharing knowledge I think you are very well suited for that job. I am just a laymen and my experience has not been a pleasant one. …….Kind regards
Your videos are so much informative. Please also advise on the following: A person worked and retired in India, was receiving pension in a resident account. After retirement, went to UK and continue to live and as a result has become NRI. But still maintains resident account for credting pension. My question is can a NRI hold a res. account also for the purpose of receiving pension.
Very informative. Can you all suggest investments for NRI who have fixed deposits but want higher interest rates. How does an NRI buy mutual funds in India or insurance products. How are they taxed etc. You two very clear , explain very well.
Thanks for your valuable informations. I have questions , After returing permanently, If NRE FD is for more years, bank will break it and renew it, from the new date. In this case person may suffer loss. Second question, there is few years that NRE intrest money will not be taxed (please correct me, before this period was 9 years and now it is 2 years.) This need to be elaborated. / clarified.
Awesome enlightenment for many ignorant NRIs. It’s an eye opener and well explained. Excellent job!! There are many NRIs who have headed home due to pandemic, travel restrictions and global business slowdown...what happens to such individuals where the future in uncertain for going abroad and they get qualified as a resident due to number of days criteria but intent is still there to explore jobs overseas? Do they need to convert bank accounts or does Government gives any leeway for pandemic stuck individuals?
As far as FEMA is concerned, if you are able to establish intent with documentary evidence, then you can continue to maintain NRO/NRE accounts. If stay increases for a prolonged period of time, then it is difficult to establish intent also.
Dear CA. Sriram, thanks a lot for the response and your guidance is much appreciated. Dr. Bhat and CA. Sriram are doing a marvelous job for enriching uninformed NRIs with their vast knowledge.👍👍
Thanks for the session. I think it will be a good idea to start with defining who is an NRI? For example difference between a person staying in Canada as a Permanent Resident and holding an Indian Passport versus A Canadian Citizen of Indian Origin (OCI) holding a Canadian Passport. Thank you.
* If you're looking from a Banking point of view : Indian passport holder with a valid PR or a Canadian passport holder with a OCI, both will be eligible to open a NRE / NRE account in India. * From Indian Taxation/ filling of Income tax in India / Ascertain Resident Indian status - point of view : This will depend on the NRI, if he/she is out of India for X number of days in a FY as per income Tax of India rules to qualify as a NRI. If you're holding Indian passport with valid Canadian PR or if you're holding a Valid Canadian Passport with OCI , but if you're in india for X number of days and qualify as a Resident Indian as per Income tax rules, you'll be liable to file taxes and pay necessary taxes here in India, provided you qualify as a Resident Indian (after considering RNOR Status).
Ok understand how to close the NRE account when NRI returns to India, but dint clear in which account this money should maintain, either ordinary SB account or current Account ? And is there any interest we should pay while maintaining this money. Appreciate your feedback in this regards
You can convert these NRE account to resident, there is no need to close.... if funds are in NRE SB, then the same will be converted to resident SB and if it is in NRE FD, then it will be converted to resident FD...
You said that one can keep an FCNR deposit till maturity if one returns to India. However, is the interest earned from the FCNR deposit taxable, because it was not taxable when one was an NRI.
Discuss clearly how about NRI stuck in homeland due to special unprecedented circumstances such COVID pandemic...what is the consider because this is a forced situation not a regular or normal condition.
@@NRIMoneyClinic thanks... because we didn't came here in a intention for permanent return and also our job is still there in abroad and our slary is dispersed every month there and we have salary slip from school for evey month.
Thank you both for the exceptional videos. I am a foreign national with oci status. I will be getting a pension from abroad when i retire in india. Will I have to then also have to convert to resident accounts? Thank you both.
As explained in the video; opening, maintaining & closing of NRE/NRO/FCNR accounts are governed by FEMA regulations. As per FEMA Act, there are only 2 types of residential status one being a Person Resident in India (PRI) and another Person Resident Outside India (PROI). Only PROI can open & maintain NRO/NRE/FCNR accounts. If a person is PRI, then he has to close his NRO/NRE accounts and FCNR can be maintained till the date of maturity.
Video needed regarding Aadhar card Nri pan card linkage or pan card invalid or without linkage how can Nri file tax online problems website for filing tax after Last date given for Aadhar card many Nri not have
Thanks for explaining it in a subtle manner. This interview cleared lot of my doubts. Can you arrange for a session on the implications of doing trading as an NRI . I opened my trading account when I was a resident Indian but have not disclosed yet that I am an NRI. Also implications of trading in India when you reside in US OR Canada
money earned from Indian business including trading using money from India is taxable. You can start another trading account for NREs and using NRE fund can do trading. The profit or loss will be credited or debited to NRE account.
If you reside in US, you must file the FBAR every year and report EVERY bank account and investments in the rest of the world. where you have a signing authority (in other words you are joint owner- NO EXCEPTIONS). This is a serious matter. Failure to do so and if caught (Indian ITO - has reporting agreements to US=IRS), can result in 50% penalty on the amount invested in India Plus other fines. You have to disclose in your returns all the income earned in India and anywhere else in the world. This is the LAW. If you are a US tax payer it is best to get rid of all investments in India which is a head ache from the point of view of filing US returns, and stay invested in US where things are a lot easy and transparent.
Greetings of the day to both of you, gentlemen. First, let me appreciate the wonderful discussion. However, I have a couple of doubts. I had a savings account in a private bank in India before I left India on employment visa in 2016. Subsequently, I had requested the banker to open NRI account. They had opened NRE account and my savings bank account was converted to NRO account. I'm planning to return to India for good somewhere in the middle of the next financial year. Can you please clarify on the following issues? 1. When I close my NRE and NRO account, what will happen to my original savings accounts at the said bank? 2. Will my NRO account be converted into savings back maintaining the same account number? 3. The amount which was there in my NRE account, will be transferred to obviously a savings account. Since this money was earned when I was an NRI, ideally it should not attract any tax under the income tax law. However, only the interest that I get on the said amount attracts income tax. Is this correct? Good day
When I permanently move to Indian my NRO/NRE accounts will move to normal savings account but my foreign bank accounts are still having money, can I transfer my foreign money yearly basis as those moneys are under some investment scheme, do I have to pay tax in India for those money?
If NRE FD has to be closed on returning to India, will it be premature closure of the NRE FD or will the type of FD change from NRE to normal FD? Closure will lead to penalty of interest by the bank. Please clarify
As I understand from my bankers, the NRE savings will have to be converted Resident savings account, but the NRE FDs can continue. However all the interest accumulated on NRE FDs from the time of status change are to be included in Resident taxable income and tax must be paid. On maturity, the NRE FDs will get converted to Resident FDs.
@@karthiksury1587 most of the times the bankers are ill informed. Don’t believe me, check the below link yourself, which RBI’s master direction 5R… check para 4.9 of ‘Part II - Opening, holding and maintaining accounts in India by a person resident outside India’ - therein www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10198
I daresay my 13 year old daughter can make simpler and clearer rules than the entire babudom of India - but again, I’m probably the hundred millionth Indian to reach that conclusion and make that observation :-)
Thanks Mr Sriram for the valuable information. Also we thank NRI Money clinic for service to NRI community. On returning back to India for good, can NRI continue to hold the overseas bank account and overseas brokerage accounts which holds overseas securities? How long can maintain the same? Is there any disclosure requirements to RBI or IT department ? Thanks
Another scenario You have lived in the US for several decades and you are a US citizen holding a OCI card, can he maintain the NRE account when he comes back for good to spend retirement in India. Can he get his pension and social security dollars depositted in this account.
No, if a OCI comes back to India for good means, he also becomes resident in India as per FEMA... hence he also cannot maintain NRE... he need to convert NRE to resident SB...
Thank you very much for your kind words . Articulation is required while pleading a case . While presenting the taxation matters , what is required is precision which the faculty has done very well. Your point is very well taken in positive spirit . Please subscribe and keep sharing the videos
Irrespective of whatever the reason to overstay more than 180 days one should close the account. It is mandatory. Only it is not taken seriously by IT.
Due to the pandemic if a person cannot go back outside India, does that person lose his NRI status and will the person have to pay income tax since he cannot be outside India for 180 days from April 2020 to March 2021.
Pl let me know since I have also come back to India due to pandamic n do not know when I will.l return since the situation abroad has not yet improved n also international Flights have not yet started. Pl advice?
No sir, definition of residential status under FEMA has not been updated for ages now. What you are talking about is residential status as per Income Tax Act which has been amended from 01.04.2020 as applicable from FY 2020-21. FYI - there is a video on RNOR status with amended provisions in the below link th-cam.com/video/pKQKwtwvUH4/w-d-xo.html th-cam.com/video/fDF2ZsFM-cM/w-d-xo.html
Minimum 180 days outside of India is requirement for Non resident status and 180 days stay in India to close the accounts. There is no such thing as no time line.
Banks normally advise to convert the NRE accounts to Resident accounts only on its maturity and not to break the NRE deposits as it would attract the penalty. Please clarify on this point .
What about an employee of an Indian company sent overseas for a deputation of 7 months on a work visa. Employee paid overseas salary and taxed in overseas bank account. Should this person open an NRE/NRO account even though it’s a temporary deputation?
Thanks for the info, can you kindly let me know regarding PIS account also? When should one close it after returning back to India ? Also how the taxation applies... Thanks again in advance!
Hello sir, What is the difference between RDA and MTSS remittance systems? Does using platforms like Transfer Wise to remitt money into NRE accounts come under MTSS?
Thanks for this informative video. I do have a question related to NRE FD accounts. The minimum duration to receive interest on an NRE FD is one year. If a NRE return to India and Close the NRE/NRO account, NRE FD's are not matured yet then Does the person receive interest earned or not? Can he continue the FD?
What about the persons working in Merchant Navy who doe come back to India after finish of their contracts every year with regards to NRE status. Some times they are unable to out side the country due to domestic reasons. and then they go back to work in the next financial year
In those condition, its fine to maintain NRE.... but such intervening period of being in India cannot be prolonged to a point where such stay could not be substantiated to prove that you always had intention to go back to work...
Love this channel for its simplicity and being straight to the point. As the tagline ways "No hype. Just the right advise". Bhat sir asks the right questions too. Thanks to CA Sriram. 👍🏼
You are doing great service to NRI community
I am CA but not having clear information.
Uncle- You are the best source of knowledge in this field! Please talk about PIS & Non PIS account too for NRI's
Thank you Sir so nice to see an info-channel of this kind with very relevant concerns/questions being answered. I just happened to stumble upon on this site and so glad i found the information sought here.
Thank you very much for your kind words. Please subscribe and keep sharing the videos
Deeply appreciate this wonderful and informative content. The FY 2020 21, I am sure, Govt will be will be considerate to the NRIs who returned for short duration but couldn't perform their journey back due to Covid restrictions on international flights / Expiration of Visa during the intervening time / Temporary Suspension of visa by the host country etc. Clearly the intent is to get back to the host country. Such NRIs probably will be able to go back in next couple of months. I want to believe Govt will not enforce FEMA act on these individuals as this is an unprecedented force majeure ( act of God ) situation . However It is important FEMA consequences are clarified as was promised by the host of this video channel. This is such a grey subject that even qualified CAs have to do some research before commenting on the subject. Once again thank your for this enormous effort and would look forward for your next video on the Consequences part of FEMA.
I am also still looking for the answer as some individuals got stuck in india due to lockdown and lost the job of such a extended leave. What is govt saying on their residential status? It would be great help if Bhat sir Shriram Sir kindly clarify this point.
Thanks again for informative video.
I am keen to watch all your queries / program. I also take the liberty to circulate this to all my friends.
Many many thanks for such a informative program
Thanks for this wonderful video.
I see unfair ruling by RBI and here is why I feel so.
Before I became an NRI, I opened fixed deposit accounts, interest were taxed. Over a period of time (many years) the FD has renewed few times and during these many years my residential status has changed to NRI. Now these FDs should be considered NRE and hence should be exempted from the income tax. My request is based on the same logic(RBI) where NRE FDs are getting taxed upon we returning back to India and loosing NRE status.
Nutshell- IF loosing NRE status allows indian gov to tax NRE FDs THEN gaining NRE status should exempt previously opened FDs from the income tax.
Your understanding is wrong. FD opened when you were NOT an NRI will remain as it is. NRE FD can be opened only with the money earned from OUTSIDE India.
By your logic a person with 10 Crore fund moves to Dubai and start a pan shop there, all his money will become NRE and interest earned will be tax free. He may be getting 50 to 60 lakhs per year interest and normal tax will be 15 to 20 lakhs. By your logic he can save the tax and spending half of it can live in Dubai.
Normal Fd becomes Nro fd, if you submit you nri détails in your bank. How ever both are taxable in india. But if you wish to convert nre fd, you need a CA certificat.
It's crystal clear information 👌thanks team you made such a WONDERFUL information for those who NRE AND NRO...categories
Thank you NRI Money Clinic for inside view .Om Sai Ram.
Points explained very simple language. Very helpful.
Dear Sriram, I am happy that I already got the relevant answers for the questions I posted a while ago, by strolling thru the several trailing comments below by various individuals along with your respective comments on RNOR. Anyways, I am going to leave my earlier comments "as is" so that any new watchers (like me) can benefit from these comments...
Excellent Information given Sir
Thank You both of You🙏🏻
Very nice knowledgeable discussion and also easy to understand as well.
Thank you Bhat and Shriram Sir for providing valuable information. You both are doing great service. 🙏
Well explained about NRI & Resident status, but I request to explain about the intermediate stage of RONR Status and applicable FEMA and Incometax provisions on NRE/NRO Accounts and taxation provisions. Thank you.
Very informative I have to follow up on this.
Very well communicated..Thank you .
Very informative. Can you please make a video on how an NRI can submit Tax return online?
Vow such a great informative video thanks both of you gentlemen 🚹 👏
Very informative video! I would love to know the consequences when the NRI has acquired a foreign citizenship and holds the OCI as well.
As far as bank accounts are concerned, situation will not differ for NRI's and OCI's...
Thanks a lot for the information. Can we ge the same type of information regarding Demat accounts pertaining to a NRI who is coming back to India permanently.?
Very well explained.. thanks
Wow - another fantastic video. Many accolades to CA Sriram's loads of knowledge on taxation and confidence during his explanation. The video is mainly focused on NRI's returning to India and still maintaining NRE accounts which somehow results in evading the tax. How about Resident Indian converted to NRI but still maintaining all his Resident Fixed deposits & sending money from Foreign to Resident Indian account, If he is filing the tax every year correctly - what would be the consequences? During filing the tax, will there be any queries or rejections by Income tax department? Also If the resident Indian who recently became NRI has multiple Resident accounts in India but he has only converted his one main account frequently used by him to NRO and NRE account. will there be any issues to continue maintaining less frequently used Resident accounts without the conversion? When does the actual issue by the various departments will be raised (Is it during Income tax filing?). What are the consequences in all these scenarios as per the Indian law?
We will do a separate video on this issue It is a major issue .
Thanks for suggesting the topic
Hi Phani,did you get an answer for your above question?
I am also waiting for the above reply or video
Very good and clear on the subject proper
Thank you. It was very informative. Clears a lot of doubts. Another point too be clarified is..... In the event of a Joint Account, if one account holder becomes a resident Indian, what status applies -- Resident or Non Resident⁉️
NRI can maintain the account in his name jointly - either or survivor basis only… cannot maintain jointly and severally
*Scenario 1: If the First applicants status changes to Resident Indian, then the account will need to be converted to Resident SB account. And the joint applicant in this account continues to be NRI, then the account mode of operation can be changed to FORMER OR SURVIVOR.
* Scenario 2: if the primary Applicant continues to be a NRI, but, the joint applicant's status changes to Resident Indian, then the Customer id status of the joint applicant will need to be changed to Resident Indian status, and change the mode of operation of this NRE / NRO account / deposits to FORMER OR SURVIVOR.
Hope this clarifies
Please tell about ppf account of NRI - opening of PPF account before NRI status, operation of PPF account after NRI status but before maturity of PPF account, closing of PPF account after maturity of 15 yr when NRI status.
Very knowledgeable video .
Very very nice information to all NRI community. Presentation is very simple and understandable. Please keep updating with all laws and new ammendments related to NRI.
What will be the status of LIC policy started before changing status from Resident to NRI while opening NRI account. Should it be closed or continue till maturity.
Can continue till maturity...
Do you know how to close my NRI account
CA Sriram is a brilliant young CA. Thanks for the inputs provided.
Very nicely explained sir.
Very good information.Thank you very much.
Very useful info
Thanks Mr. Bhat.
Thanks for the valuable information. Please do as many such information. Excellent
Dear Sir. Thanks for your reply which is much appreciated. To be honest, an Indian should not even have an NRE account. It may earn interest in India but this interest is taxable in the country where one is living ( I mean abroad ). Transferring NRE funds abroad is a big headache. I have been through it 7/8 times and I know how it feels. I regret opening NRE accounts.NRO account is a better option tax is deducted at source and is refundable if one qualifies for it. Of course, IT return has to be filed by a CA ( fee will be charged )and it takes months to get the refund. Opening NRE and NRO accounts may be easy for some but I shall not recommend them.As for sharing knowledge I think you are very well suited for that job. I am just a laymen and my experience has not been a pleasant one. …….Kind regards
Agree with you 200%. You never come out ahead with declining exchange rate and the tax filing and other paper work. Not worth it.
Basically one should understand Tax residency status.
👏👏 each videos are very informative .
Your videos are so much informative. Please also advise on the following:
A person worked and retired in India, was receiving pension in a resident account. After retirement, went to UK and continue to live and as a result has become NRI.
But still maintains resident account for credting pension.
My question is can a NRI hold a res. account also for the purpose of receiving pension.
No , you should not hold Resident account as a NRI . Convert Resident account to NRO account and give that account number for crediting your pension
@@NRIMoneyClinic Thank you, sir. I will do, sir.
Superb insights
Yes ,lot of knowledge, thanks.
straight away subscribed your channel
Very informative video. Thank you so much
Very informative. Can you all suggest investments for NRI who have fixed deposits but want higher interest rates. How does an NRI buy mutual funds in India or insurance products. How are they taxed etc. You two very clear , explain very well.
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Excellent discussion...
wah... thank you Sir for explaining ...!
Useful it is... Yes
Very informative. Thanks for sharing.
Can you please tell about LIC policies taken by NRI before going to US
very informative video, what if I have FD in NRE account? Can I maintain NRE till the maturity?
Thanks 4 the invaluable info please
Very informative sir. ..
Waiting for the consiquence video....
Goodinfo.thanks
Thanks for your valuable informations. I have questions , After returing permanently, If NRE FD is for more years, bank will break it and renew it, from the new date. In this case person may suffer loss. Second question, there is few years that NRE intrest money will not be taxed (please correct me, before this period was 9 years and now it is 2 years.) This need to be elaborated. / clarified.
Great ! How can one contact your office for issues related to PIO/ OCI resident in India.
Beautiful questions
De facto ,the word .
Awesome enlightenment for many ignorant NRIs. It’s an eye opener and well explained. Excellent job!!
There are many NRIs who have headed home due to pandemic, travel restrictions and global business slowdown...what happens to such individuals where the future in uncertain for going abroad and they get qualified as a resident due to number of days criteria but intent is still there to explore jobs overseas? Do they need to convert bank accounts or does Government gives any leeway for pandemic stuck individuals?
As far as FEMA is concerned, if you are able to establish intent with documentary evidence, then you can continue to maintain NRO/NRE accounts. If stay increases for a prolonged period of time, then it is difficult to establish intent also.
Dear CA. Sriram, thanks a lot for the response and your guidance is much appreciated. Dr. Bhat and CA. Sriram are doing a marvelous job for enriching uninformed NRIs with their vast knowledge.👍👍
Nice presentation very useful
Thanks for the session. I think it will be a good idea to start with defining who is an NRI? For example difference between a person staying in Canada as a Permanent Resident and holding an Indian Passport versus A Canadian Citizen of Indian Origin (OCI) holding a Canadian Passport. Thank you.
* If you're looking from a Banking point of view : Indian passport holder with a valid PR or a Canadian passport holder with a OCI, both will be eligible to open a NRE / NRE account in India.
* From Indian Taxation/ filling of Income tax in India / Ascertain Resident Indian status - point of view : This will depend on the NRI, if he/she is out of India for X number of days in a FY as per income Tax of India rules to qualify as a NRI.
If you're holding Indian passport with valid Canadian PR or if you're holding a Valid Canadian Passport with OCI , but if you're in india for X number of days and qualify as a Resident Indian as per Income tax rules, you'll be liable to file taxes and pay necessary taxes here in India, provided you qualify as a Resident Indian (after considering RNOR Status).
Ok understand how to close the NRE account when NRI returns to India, but dint clear in which account this money should maintain, either ordinary SB account or current Account ? And is there any interest we should pay while maintaining this money. Appreciate your feedback in this regards
You can convert these NRE account to resident, there is no need to close.... if funds are in NRE SB, then the same will be converted to resident SB and if it is in NRE FD, then it will be converted to resident FD...
Excellent and very informative...
You said that one can keep an FCNR deposit till maturity if one returns to India. However, is the interest earned from the FCNR deposit taxable, because it was not taxable when one was an NRI.
Discuss clearly how about NRI stuck in homeland due to special unprecedented circumstances such COVID pandemic...what is the consider because this is a forced situation not a regular or normal condition.
That will not affect your NRE accounts .
@@NRIMoneyClinic thanks... because we didn't came here in a intention for permanent return and also our job is still there in abroad and our slary is dispersed every month there and we have salary slip from school for evey month.
Could you please make a video about people who obtained foreign citizenship and are returning to India?
Thank you both for the exceptional videos.
I am a foreign national with oci status. I will be getting a pension from abroad when i retire in india. Will I have to then also have to convert to resident accounts? Thank you both.
Thank you.. I need to close my nre accounts soon.
Banker will have to update KYC and update of details will tell the Change of Status. Ther one can get caught.
Banks advising not to declare FATCA as one is already a tax resident of India
As you said in the beging, who an when to open these accounts, was not discussed.
As explained in the video; opening, maintaining & closing of NRE/NRO/FCNR accounts are governed by FEMA regulations.
As per FEMA Act, there are only 2 types of residential status one being a Person Resident in India (PRI) and another Person Resident Outside India (PROI).
Only PROI can open & maintain NRO/NRE/FCNR accounts. If a person is PRI, then he has to close his NRO/NRE accounts and FCNR can be maintained till the date of maturity.
very helpful & very well thought through. One quick question, if a person is no longer an Indian citizen, does all this apply for him/her ?
Yes, it would apply provide he has bank accounts in India..
Video needed regarding Aadhar card Nri pan card linkage or pan card invalid or without linkage how can Nri file tax online problems website for filing tax after Last date given for Aadhar card many Nri not have
Thanks for explaining it in a subtle manner. This interview cleared lot of my doubts. Can you arrange for a session on the implications of doing trading as an NRI . I opened my trading account when I was a resident Indian but have not disclosed yet that I am an NRI. Also implications of trading in India when you reside in US OR Canada
money earned from Indian business including trading using money from India is taxable. You can start another trading account for NREs and using NRE fund can do trading. The profit or loss will be credited or debited to NRE account.
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If you reside in US, you must file the FBAR every year and report EVERY bank account and investments in the rest of the world. where you have a signing authority (in other words you are joint owner- NO EXCEPTIONS). This is a serious matter. Failure to do so and if caught (Indian ITO - has reporting agreements to US=IRS), can result in 50% penalty on the amount invested in India Plus other fines. You have to disclose in your returns all the income earned in India and anywhere else in the world. This is the LAW. If you are a US tax payer it is best to get rid of all investments in India which is a head ache from the point of view of filing US returns, and stay invested in US where things are a lot easy and transparent.
Greetings of the day to both of you, gentlemen. First, let me appreciate the wonderful discussion. However, I have a couple of doubts. I had a savings account in a private bank in India before I left India on employment visa in 2016. Subsequently, I had requested the banker to open NRI account. They had opened NRE account and my savings bank account was converted to NRO account.
I'm planning to return to India for good somewhere in the middle of the next financial year. Can you please clarify on the following issues?
1. When I close my NRE and NRO account, what will happen to my original savings accounts at the said bank?
2. Will my NRO account be converted into savings back maintaining the same account number?
3. The amount which was there in my NRE account, will be transferred to obviously a savings account. Since this money was earned when I was an NRI, ideally it should not attract any tax under the income tax law. However, only the interest that I get on the said amount attracts income tax. Is this correct?
Good day
1. NRO/ NRE will get re-designated to resident accounts
3. Correct
When I permanently move to Indian my NRO/NRE accounts will move to normal savings account but my foreign bank accounts are still having money, can I transfer my foreign money yearly basis as those moneys are under some investment scheme, do I have to pay tax in India for those money?
If NRE FD has to be closed on returning to India, will it be premature closure of the NRE FD or will the type of FD change from NRE to normal FD? Closure will lead to penalty of interest by the bank. Please clarify
This question can be better answered by your banker.
As I understand from my bankers, the NRE savings will have to be converted Resident savings account, but the NRE FDs can continue. However all the interest accumulated on NRE FDs from the time of status change are to be included in Resident taxable income and tax must be paid. On maturity, the NRE FDs will get converted to Resident FDs.
@@karthiksury1587 most of the times the bankers are ill informed. Don’t believe me, check the below link yourself, which RBI’s master direction 5R… check para 4.9 of ‘Part II - Opening, holding and maintaining accounts in India by a person resident outside India’ - therein
www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10198
@@sriramrao2514 thank you. I thought it will benefit many. Hence I posted
@@karthiksury1587 thank you so much
Thnk you. Very clear explanation.
Thanks for the information.
I daresay my 13 year old daughter can make simpler and clearer rules than the entire babudom of India - but again, I’m probably the hundred millionth Indian to reach that conclusion and make that observation :-)
Very nice information 👌 👍
Can you also make a video of how Nri/Oci holders can open demat accounts and invest in stocks ,mutual funds and futures and options
Thanks Mr Sriram for the valuable information. Also we thank NRI Money clinic for service to NRI community.
On returning back to India for good, can NRI continue to hold the overseas bank account and overseas brokerage accounts which holds overseas securities? How long can maintain the same? Is there any disclosure requirements to RBI or IT department ?
Thanks
Another scenario You have lived in the US for several decades and you are a US citizen holding a OCI card, can he maintain the NRE account when he comes back for good to spend retirement in India. Can he get his pension and social security dollars depositted in this account.
No, if a OCI comes back to India for good means, he also becomes resident in India as per FEMA... hence he also cannot maintain NRE... he need to convert NRE to resident SB...
Thank you for your valuable information
Good intention to do a program on this subject. Very useful. However nextvtime can you bring an expert who is a little more articulate.
Thank you very much for your kind words . Articulation is required while pleading a case . While presenting the taxation matters , what is required is precision which the faculty has done very well. Your point is very well taken in positive spirit . Please subscribe and keep sharing the videos
Sir, Great Discussion! I learned a lot! Thanks!
Irrespective of whatever the reason to overstay more than 180 days one should close the account. It is mandatory. Only it is not taken seriously by IT.
Due to the pandemic if a person cannot go back outside India, does that person lose his NRI status and will the person have to pay income tax since he cannot be outside India for 180 days from April 2020 to March 2021.
Will soon do a video this topic
@@NRIMoneyClinic pls , awaiting.
Pl let me know since I have also come back to India due to pandamic n do not know when I will.l return since the situation abroad has not yet improved n also international Flights have not yet started. Pl advice?
The definition of resident Indian changed to more than 4 months in India instead of 182 days earlier. Please update.
No sir, definition of residential status under FEMA has not been updated for ages now. What you are talking about is residential status as per Income Tax Act which has been amended from 01.04.2020 as applicable from FY 2020-21. FYI - there is a video on RNOR status with amended provisions in the below link
th-cam.com/video/pKQKwtwvUH4/w-d-xo.html
th-cam.com/video/fDF2ZsFM-cM/w-d-xo.html
Minimum 180 days outside of India is requirement for Non resident status and 180 days stay in India to close the accounts. There is no such thing as no time line.
Banks normally advise to convert the NRE accounts to Resident accounts only on its maturity and not to break the NRE deposits as it would attract the penalty. Please clarify on this point .
There is another video on this channel by name what happens to NRE FD when ypu return .. please watch and be guided
Thank you
What about an employee of an Indian company sent overseas for a deputation of 7 months on a work visa. Employee paid overseas salary and taxed in overseas bank account. Should this person open an NRE/NRO account even though it’s a temporary deputation?
Thanks, it was very informative video
👌good discussion.
What happens to PPF account opened prior to becoming NRI & can it be continued till its maturity period?
wat about people with oci has to close nre account wen in india
Thanks for the info, can you kindly let me know regarding PIS account also? When should one close it after returning back to India ? Also how the taxation applies... Thanks again in advance!
Hello sir, What is the difference between RDA and MTSS remittance systems?
Does using platforms like Transfer Wise to remitt money into NRE accounts come under MTSS?
THANKS
Thanks for this informative video. I do have a question related to NRE FD accounts. The minimum duration to receive interest on an NRE FD is one year. If a NRE return to India and Close the NRE/NRO account, NRE FD's are not matured yet then Does the person receive interest earned or not? Can he continue the FD?
Bank gives interest for part periods also… consult your banker for further information
What about the persons working in Merchant Navy who doe come back to India after finish of their contracts every year with regards to NRE status. Some times they are unable to out side the country due to domestic reasons. and then they go back to work in the next financial year
In those condition, its fine to maintain NRE.... but such intervening period of being in India cannot be prolonged to a point where such stay could not be substantiated to prove that you always had intention to go back to work...
Amazing channel,