I would like to share the problems being faced in India by returning NRI's with many private banks.
Many banks like ICICI, YES, HDFC etc are not very well aware of the rules for returning Indians and it was a herculean task for me to change my status from Non resident to resident with these banks. My NRE FD's were terminated premature causing interest loss to me and also it took lot of time after informing them about change in my status.
My FCNR, upon maturity was not converted to RFC deposits and it took me lot of time to get the funds transferred to other banks, incurring huge interest loss to me.
I would recommend that all NRI's should have account with SBI only who take care of returning NRI's very much more
Many banks like ICICI, YES, HDFC etc are not very well aware of the rules for returning Indians and it was a herculean task for me to change my status from Non resident to resident with these banks. My NRE FD's were terminated premature causing interest loss to me and also it took lot of time after informing them about change in my status.
My FCNR, upon maturity was not converted to RFC deposits and it took me lot of time to get the funds transferred to other banks, incurring huge interest loss to me.
I would recommend that all NRI's should have account with SBI only who take care of returning NRI's very much more
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Mar 30
Sharad ji, I already wrote that there is no tax liability on FCNR's till maturity. Your tax liability starts in the financial year when you become resident for all income in India including NRE deposits even though they can also continue till maturity as per RBI rules. more
Jan 24
Dear Brij ji ,thanks for advice of the part I was not fully aware. Requst to advise me on second issue which is the status of FCNR account and IT liability thereof. more
Jan 24
Sharad ji, I think you need to read the law carefully, it seems you are not aware of actual rule with respect to this. Once you return to India with the intention of staying in India, you have six months period to decide and change your status to Resident. Once you inform the banks about change of your status, FCNR deposits will continue till maturity and there is no tax liability on the same till maturity on interest earned on FCNR. If you again become NRI after say a gap of one year, you do not have to do any thing wrt your FCNR more
Jan 23
Dear all , i will always to keep FCNR account separate than ordinary account. Nobody prevents u from transacting , accountability is crystal clear from the angle of tax . As it is once we come back to India , interest earned on this account becomes taxable only after 6 months from the date of returning.There is no problem of foreign currency conversion also Can somebody guide me what happens to interest of this account if you once again become NRI may be with a gap of 1 year ? more
Jan 23
