Nre a/c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2013 I have a NRE A/C but i have returned back to India 3 yrs back . I was not aware that i have to inform the bank once i returned.
Now can i still maintain that A/C or have to cloce my A/C
secondly what r the taxes appliclable to me n if any penalty i have to pay
pls reply soon

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 August 2013 now you cannot maintain such a/c as you have become resident and only nri is permitted to continue such a/c.

no taxes penalty is applicable.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 Thanks for ur response
Can u pls let me know how much tax i have to pay n also the penalty

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 August 2013 on closing a/c no tax and penalty is applicable.

but if u use this money for earning income in india after becoming resident then it will be taxable.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 Thnx 4 ur quick response n i appreciate u
U mean i can close my A/C now without any taxes or penalty n then after becoming a resident i have to pay taxes on my money

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 August 2013 after u became resident if you use this money for earning income then it will be taxable and not now.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 Sorry i am not still getting u ,
I am getting interest on my A/C now so i have to pay taxes on that.
n after becoming a resident i will continue to use my money in the same bank so shall i have to pay taxes from that time only

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 August 2013 the ans is yes.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 September 2013 When you returned to India you must have opened NRO A/c and thereafter that very account is converted into NRE a/c. If you do not have any plan to go back to the country from where you have returned to India then you should close this NRE a/c as you are not receiving any foreign remittances. Once you close you have to transfer the balance in regular account to keep the continuity of the bank balances.

No tax no penalty on closer