Nri returning to indai

This query is : Open

Guest

Guest (Querist)

05 September 2016 Hello Sir ,

Cold you please evaluate below situation and advice ?
Assume if an NRI who spent above 30 years outside India is returning back for good.
1. How long his NRE / FCNR account can be with NRE status. On the other hand when those accounts will be converted to Normal Savings Account. (6 months / 1 year etc…)
2. Assume if the NRE has a FD of 50 lakhs for 10 years maturity period and he will be returning back for good after 2 years of opening the FD. I believe until the contractual period of 10 years the FD can continue. But how long the interest is not taxable on the FD. I read an article where it stays if an NRE is outside india for 9 year out of last 10 years then he can enjoy tax free status for 2 years from the date of return.
3. If the NRE & his spouse has different fixed deposits whether they can be considered as separate income tax assesses.
4. Assume if the NRE is returning and he and his wife has separate FD’s. Husband is above 60 and wife below 60. Can they enjoy 3 lakhs (husband) and 2.5 lakhs for wife as exempted income on their FD’s. Both of them were working abroad and had separate salaried income for themselves.

Amol S Joglekar

Amol S Joglekar (Expert)
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05 September 2016 you need to check your status " resident but not ordinarily resident" (RBNOR)
During being RBNOR, NRE deposit interest etc is not taxable in India.
For converting FCNR etc..... you need to be non resident as per FEMA and not income tax......So if you have decided to permanently settle in India, better to inform the same to your bankers as soon as possible...within 6 months

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SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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05 September 2016 Questions 3 and 4 - yes. both husband and wife would be assessed to tax separately and hence separate basic exemption limit would be available. Kindly ensure that the provisions of clubbing of income are not attracted.

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