Every few weeks an NRI writes to me with some version of the same sentence: “I moved to Singapore in 2019 and I think my savings account is still a normal one.”
It usually is. And it usually costs them nothing for years, until the day it costs them a lot.
Changing your residential status is not one decision. It is about a dozen small housekeeping jobs, spread across banks, fund houses and a depository. Miss them and you are technically in breach of FEMA, sitting on wrong tax treatment, and often stuck when you actually need the money.
⚡ Quick Answer
When you become an NRI, your resident savings account must be redesignated as NRO, resident fixed deposits move to NRO deposits, your demat converts to an NRO non-PIS account, and mutual fund folios get a KYC status change. When you return, NRE and NRO accounts become resident accounts, FCNR maturities can move into an RFC account, and your NRI demat closes in favour of a resident one. The rule under FEMA is “immediately”, not “whenever you next visit India”.
Start here – Who is an NRI: Definition and Scenarios
First, be sure your status has actually changed
Residency for FEMA and residency for income tax are two different rulebooks, and people mix them up constantly.
FEMA looks at intention. The day you leave India for employment, business or an indefinite stay abroad, you are a person resident outside India. Your accounts are governed by that, from day one.
Income tax counts days. You are non-resident if you spend less than 182 days in India in a financial year, subject to the 60 plus 365 day test. If your Indian income crosses Rs 15 lakh, the threshold tightens to 120 days, and deemed residency under section 6(1A) can pull you in if you are not liable to tax anywhere else.
Think of it like a driving licence and a passport. Both say who you are, neither replaces the other. Your bank cares about the FEMA answer. Your tax return cares about the day count.
Bank accounts
Resident to NRI
You cannot hold a resident savings account once you are non-resident. The account gets redesignated as NRO. That is a conversion, not a closure, so your ECS mandates, standing instructions and existing account number usually survive.
Then you choose what else you need:
| Account | What goes in | Tax on interest |
|---|---|---|
| NRE | Foreign earnings only. Fully repatriable | Exempt while you are non-resident |
| NRO | Indian income – rent, dividends, pension, sale proceeds | Taxable, TDS applies |
| FCNR (B) | Term deposits in foreign currency | Exempt while non-resident. No rupee risk |
Read that last column carefully, because it is where most people go wrong. NRE and FCNR interest is exempt because you are non-resident, not because the product is permanently tax free. The exemption is attached to you, not to the deposit. That distinction costs nothing while you are abroad and a great deal the year you come home.
Your resident fixed deposits also need to be converted to NRO deposits. Banks generally allow this without breaking the rate, but ask before you assume.
NRI to resident
On return, NRE and NRO accounts get redesignated as resident accounts. Existing FCNR and NRE deposits can run to maturity at the contracted rate, and on maturity you can move the money into an RFC account rather than converting to rupees.
The RFC account is the piece most returning NRIs underuse. It lets you hold dollars, pounds or dirhams in India, and the interest stays exempt while you hold RNOR status.
Read – What is an RFC Account? and RNOR Status Explained
Demat and shares
This is the section where bad advice does the most damage, usually delivered with great confidence by someone at a bank counter. So let me be precise.
Becoming an NRI does not mean you must open a PIS account. Your existing resident demat is closed and holdings move to an NRO demat account on a non-repatriable basis. Everything you bought as a resident sits there quite happily. You can hold it, or sell it, with proceeds credited to your NRO account.
A Portfolio Investment Scheme account is only needed if you want to buy fresh shares on the secondary market on a repatriable basis through your NRE funds. Many NRIs never need one. Plenty of banks will still try to sell you one.
Coming back the other way, the NRI demat closes and holdings transfer to a resident demat. Tell your depository participant and your bank. The transfer itself is an off-market move between your own accounts, so it is not a sale and does not trigger capital gains.
Mutual funds
Mutual fund units survive a status change. You do not redeem anything.
What you do is update the folio. Write to the AMC or the RTA with your folio numbers, the new status, KYC documents, passport, overseas address proof and the new bank details. Redemption proceeds then land in the right account and TDS is applied correctly.
Skip this and two things break. Your redemption gets credited to an account that no longer matches your status, and the AMC applies resident TDS rules to a non-resident, or the reverse. Untangling that takes months.
US and Canada residents have an extra step, because many AMCs restrict fresh purchases under FATCA. Existing units are usually fine. Fresh SIPs may not be.
Check – NRI Mutual Fund Taxation in India
PPF, NSC and small savings
You cannot open a PPF account as an NRI. If you already have one from your resident days, you can generally continue it until maturity.
What you cannot do is extend it beyond maturity in the usual five year blocks. That option is for residents. Once your PPF matures, the account has to be closed and the proceeds taken. The same logic applies to NSC. Money left sitting past maturity typically earns the plain savings rate, which is a slow, invisible loss.
Contributions while you are an NRI come from your NRO or NRE account. On return, they come from your resident savings account again.
Note: This graphic is from an older edition and does not reflect the current position on demat conversion, PPF extension or NPS continuity. Follow the text, not the image.
NPS
A lot of NRIs are told they have to close their NPS account when they move abroad. You do not.
An NPS Tier I account continues across the status change. You update your status and bank details with the CRA, and contributions come through your NRE or NRO account. You are not meant to hold two PRANs, so opening a “new NRI account” is exactly the wrong move.
On return, you update the record again and go back to contributing from your resident account. Citizenship change is the one event that genuinely ends the account.
Insurance
A policy bought as a resident stays valid when you become an NRI. Inform the insurer anyway, in writing, and keep the acknowledgement.
The reason is not the premium. It is the claim. Insurers ask about country of residence at claim stage, and a mismatch between what they have on record and where the policyholder actually lived is one of the more painful reasons families face delays. Ten minutes of paperwork now saves your spouse a fight later.
The delay that quietly costs the most
A returning client held roughly Rs 1.4 crore across FCNR deposits and an NRE fixed deposit. He redesignated everything to a plain resident rupee account within a month of landing, because that is what the branch suggested. Had the FCNR maturities gone into an RFC account instead, the interest would have stayed exempt through his RNOR years. At around 4% on the foreign currency portion over two RNOR years, the difference in tax alone was close to Rs 3 lakh, before you count what the rupee did over the same period.
The RNOR window is short and it does not come back. Most people find out about it after it has closed.
Why the paperwork sits undone for years
This is present bias at its most ordinary. The cost of updating your accounts is today, real and irritating. The benefit is some vague future where a redemption goes smoothly. The brain discounts that future heavily.
So the form stays in the drafts folder. The branch visit waits for “next India trip”. And when the next trip comes, there is a wedding, a hospital visit, a father who wants to talk about the plot in Jaipur.
Baad mein kar lenge. We will do it later.
The way around it is to stop treating this as a project. Pick the three accounts that hold most of your money and fix those in one sitting. The rest can follow.
Moved abroad years ago and never updated a single account?
A structured plan puts the accounts, the tax status and the repatriation route in one place.
Frequently asked questions
How soon must I convert my resident account after moving abroad?
Immediately, in FEMA language. In practice, within a few weeks of taking up employment or an indefinite stay abroad. There is no grace period written into the rules.
Can my wife in India stay on my NRO account?
Yes. A resident close relative can be a joint holder on an NRO account, and on an NRE account on a former or survivor basis.
Does converting my demat trigger capital gains?
No. Moving your own holdings between your own accounts is not a transfer for tax purposes. Get the off-market instruction wording right so it is not treated as a sale.
Will my NRE interest stay tax free after I return?
No. The exemption is tied to your non-resident status. Existing deposits can run to maturity, but the interest becomes taxable once you are resident. RFC is the route to keep foreign currency working.
Do I have to close my NPS account when I become an NRI?
No. Tier I continues. You update your status and bank details with the CRA and keep contributing. Only a change of citizenship ends it.
I am an NRI with a resident savings account still running. What is the risk?
It is a FEMA contravention, and it can be compounded with the RBI. The more immediate pain is operational: blocked credits, KYC freezes and a bank that suddenly wants explanations at the worst moment.
Do I need a PIS account?
Only if you want to buy shares on the secondary market on a repatriable basis. For holding, selling or investing through mutual funds, you do not.
Also read – The NRI Checklist and Investment Options for NRIs in India
Nobody moves countries thinking about account redesignation. You are thinking about schools, visas, whether your mother will manage.
But the paperwork you skipped in the first month is the paperwork that shows up in the year you most need the money.
💬 Your Turn
Which account have you been meaning to convert for the longest, and what is the actual reason it is still pending?
I am NRI who has returned to India on October 1st, looking to go back again, which might or might not materialize in the next two to three months. Should I convert my existing NRI accounts, PMS and demat to domestic account now or wait?
I opned enps when I was nri. Now my status is changed to resident. How to change my enps account from nre to resident
Hi Umashanker Singh,
Get in touch with your NPS service provider or the bank through which you opened your NPS account. They will guide you through the process and provide you with the necessary forms and information. You will typically need to fill out a “Change of Status” form. This form is used to update your NPS account status from NRE to a resident.
Hi,
Thanks for this write-up. Can you improve it by including information for OCIs who are now living in India? Should they follow the suggestions that you have mentioned for ‘Residents’ here or are there different rules (for each of these asset classes)?
Rnor status how many days one has to be in india for a financial year
Hi Karan,
If you have not been an NRI in the previous financial year, you are considered RNOR if you are in India for 729 days or less during the seven financial years preceding the current financial year.
Accidentally opened ppf account in savings account after becoming NRI
Hi Randeeprv,
If you accidentally opened a PPF account after becoming an NRI, there are certain rules and regulations you need to be aware of. PPF accounts are typically meant for Indian residents, and NRIs are not eligible to open new PPF accounts.
I already have nri and i have nre and nro account. And im investing in stocks using one of my resident savings account Should i convert my trading ordinary account to nro or Should i tranfer my trading account to account already nre or neo
Hi Sree,
If you have an NRE account, you can open an NRE trading account with a registered broker in India. An NRE trading account allows you to invest in the Indian stock market using funds held in your NRE account. The advantage of this approach is that it keeps your investments and income in Indian stocks entirely in the NRE status, which means it is fully repatriable, and the income is tax-free in India.
Hello,
My resident status in India changes from year-to-year for eg for FY2022-23 I am tax resident in India, but FY2023-24, I will be non-resident. In such a situation, is it possible to switch NRE/NRO savings a/c back-and-forth to resident savings, or are such changes more long lasting?
Thank you for your excellent post
Hi RPalany,
It’s important to note that tax residency status changes cannot be switched back and forth casually. They are based on specific criteria set by the tax authorities and are typically determined for each financial year based on your physical presence and other factors. Once your tax residency status is established for a particular financial year, it remains so for that year, you need to inform your bank about the change in your tax residency status, they will guide to in changes for your account.
I have NRE fixed deposits which will mature in March 24. I am converting my account to resident.What action do i need to take
Hi Anil
As per my knowledge If you have Non-Resident External (NRE) fixed deposits that are going to mature in March 2024 and you are converting your account to resident status, there are a few actions you may need to take. Here’s a general guide:
Contact your bank: Get in touch with your bank where the NRE fixed deposits are held and inform them about your intention to convert your account to resident status. They will guide you through the necessary steps and provide you with the required forms and documentation.
Provide updated KYC documents: As you are changing your residency status, you will need to provide updated Know Your Customer (KYC) documents to the bank. These may include proof of address, proof of identity, and any other documents required by the bank. Make sure to inquire with your bank about the specific documents they require for the conversion process.
Update your tax status: Once your account is converted to resident status, you will be subject to tax laws applicable to residents in your country. Consult with a tax professional or the appropriate tax authority to understand your tax obligations and ensure compliance.
Evaluate investment options: Once your fixed deposits mature, you may want to explore different investment options for your funds as per your financial goals and risk appetite. Consider consulting a financial advisor who can help you make informed investment decisions based on your specific requirements.
It’s important to note that the process may vary depending on the bank and the country you are residing in. Therefore, it is recommended to directly contact your bank for specific instructions tailored to your situation.
I was an nri for the last 30 yearsI came back to india during jan 2022 and declared as a resident in october 2022 , Is tds is applicable to me for first and second quarter of the last financial year 2022-2023
Hi Oommen,
Please contact a CA for the same.
When my status changes from NRE to NRO is my interest on NRE FD will be taxable from the day my status changed or there is a grace period of 2 years?
Hi Avnish,
It will be taxable from DAY 1.
How to change status of mutual funds held from NRI TO STANDARD ?
Hi Satish
The mutual fund units can be held when the resident status changes. Process – Write a letter to individual AMCs with folio no stating your change of Status from NRI to Resident individual and attach the canceled cheques of your old NRE/NRO and the new resident account.
Can you please advise on Sukanya Samriddhi account to for resident Indian become NRI and already made deposit for 7 years. How the maturity amount be calculated once status changed to NRI?
Hi Ashish,
You must close your account and withdraw the money as you cannot contine contributing to that account.
What is the time frame to convert NRI accounts to resident account
Hi Sangita,
It is advisable to check with the individual’s bank regarding their policies and procedures for converting NRI accounts to resident accounts.
According to my knowledge it usually takes 7-10 days to convert NRI to resident account.
I need NRI status change date?
Hi Nisvar,
The date of change of NRI (Non-Resident Indian) status depends on various factors such as the individual’s travel history, period of stay outside India, and the purpose of stay. Therefore, the exact date of change of NRI status varies depending on the individual’s specific circumstances.
I want to convert my bro account to resident account
My pancard is nri now in bhopal i cannot go there to change my pancard i need to transfer my pancard to hospet ito office plz kindly help me
How should I change my NRI status to RESIDENT in equity shares
Hi Harjinder,
You will need to convert your NRI demat account to a resident demat account. This can be done by submitting a written application to your depository participant (DP) along with the required documents.
I was having NRI/NRO A/Cs for long time now I have returned to india before 3 months after retirement from Saudi Arabia,Hiw can I change my NRE a/c to resident savings a/c?
Hello zjamsged,
Please, approach your bank for status change.
how to close nps account if resident status is changed
Hii Abhi
You can open the account through eNPS ifyou have an Aadhaar or PAN card. It can be done from the eNPS website.
You can download the NRI NPS form, complete it and submit it to the bank branch.
The amount will have to be remitted through the NRE/NRO account.
I’m a NRI and will return to India soon for good. What things should i do after i move to India?
Hi Abhishek,
You need to do the following things:
1. Changing bank accounts.
2. Opening a Savings Account in India.
3. liquidating your foreign assets.
4. Change in taxation.
5. sign up for a good health and life insurance policy for yourself and your family as the insurance policy, you bought in a foreign country, will not cover you in India.
can NRI family member hold the saving account in india?
Hi Radhey,
An NRI family can not hold a resident savings account when they become NRI. They will need to convert that account into NRO and NRE Account.
NPS account : Citizen status changed from RI to NRI. What to do with existing RI NPS account
Hi Ranjeet,
You need to change the status in NPS also. You can do it online.
Hi Pinki,
Do you know how to change the Citizen status online for NPS ?
If I buy mutual funds in my nri account can I hold these mutual fund investment after coming back India?
Hi Vijayakumar,
Yes, you can but you will have to update KYC.
I am an Indian Resident – My daughter who is US Citizen wants to apply for my GREEN CARD – I want to know if My Status changes from Indian Resident to Green Card holder – what will be the tax implication on my Earnings in India – which is mainly the income from FD/Bonds interest & MF & Shares buy and sale
Hi Shekhar,
Kindly consult with your Tax consultant.
My daughter is an NRI, living in States. She wants buy a property where we can live. Is it right thing to give her employement/income related documents and buy or we can locally apply for loan and she continues to send us money into her NRE a/c to pay up EMIs?
I have been in USA for couple of years with one year gap(in india). I have never reported my foreign account/money/saving to IRS while filing tax returns as i didnt have that much knowledge at the time so i missed . Now i am in need to bring my own money from INDIAN saving accounts to USA bank account. can you please let me know what should i do/follow so that i can bring the money legally into US account ?
Can i report my foreign account first as part of this year tax return and then bring them thourhg remittance process in indian bank website ?
or i can bring the money and then report t IRS as part of tax filing – it will be more than $10K?
Would USA bank have any concern ?
Hi, Pankaj Sharma
First, You should have to convert your resident savings account into NRE Account, then you can transfer amount from NRE account to US Account.
Resident savings account can never be converted to a NRE account. It can be converted only to NRO account.
What documents have to be provided when a change in status is made nro to ri
Hi Rahul,
KYC will have to be done and whatever documents are required will have to be submitted.
How can I change name on the shares purchased as Indian resident. Now I am a US Citizen
Hi Sridhara,
You need to update the name in all the documents and KYC modifications.
Hi Sridhara,
Kindly contact your Depository/Broker.
what happens to NRI A/c if NRI turns status to Foreign National
hi Sreejith,
you can hold the account.
01) Maximum how many years 1 can enjoy RNOR status ? 02) i m working in middle east for 27 years n visited india every year for 25 days vacation. i plan to return permanently on august 21, 2022 . will i get RNOR status for FY 22-23, 23-24 N 24-25 ? 03) If i return to india on Oct. 10, 2022, will i be treated as NRI for FY 22-23 n subsequent 3 FY as RNOR ? pls. answer above 3 queries specifically. i will appreciate answer to each query in yes or no and with explanation if any. Dhanyawaad.
Hi Damodar
1. A person can enjoy 2 years of RNOR status.
2. RNOR status for FY 2024-2025 would be doubtfull as you will stay more than 6 months in FY 2022 & 2023.
3. Yes, if you come in Oct 2022 then you will be NRI for that particular year but for next 2 years you can enjoy the RNOR status and from 3rd year it will be resident.
thanks, Aziz Bhai. it is clear to me now.
when I return to India when my resident status changes from NRI
Hi Ramkumar
It will immediately change and depending upon your stay in India, you will become RNOR
Hi I have not not coverted my resident bank and demat account to NRO and kept on investing in indian stock market from resident demat for last 1.5 year after becoming NRI..Now what shall I do shall i sell all stocks and book profits and close the account or what can be done legally..please advice.
Hii Mr. Arnab
As per my knowledge it is illegal for an NRI to have a resident saving account so firstly you must change your bank status to NRI and also NRI must open Portfolio Investment Scheme for investing in direct equities.
what is the impact of existing credit card account after NRI status ? Can I use them or do I need to close it?
Hii Rajib Seth
As per my knowledge you may continue to hold the Credit card provided you have the NRE or NRO account.
It is advisable to contact your respective bank.
How can I change the residential status from NRI to Resident in India?
Hii Sonal
As per my knowledge to change the residential status from NRI to resident in India first you need to inform the bank and process your KYC with identity proof
how needs to update the NRE account to normal account change to ULIP companies
Hi Abhi
Please consult with your Insurance Agent.
Related to mf redemption on returning to India
India change ri bank deposit account status to nre
I invested in Government India Bonds as resident, I am now nri
Hi Jay
NRI can invest in certain GOI Bonds via Fully Accessible Route. You need to approach where you had bought the Bonds can inform them about your current status and they will guide you on changing the details in the bond.
What happens to my existing mutual funds returns if I am planning to shift to Australia?
Hi Sanjay,
You need to change your status in the mutual fund companies.
How to change pan card status from NRI to the resident? Because I am intent to open a Demat account and when to sign up it’s showing status in NRI.
Hi Chakkammattil,
For changing the status in DMAT account contact your broker in which you have DMAT account. For changing status PAN Card try this through PAN-NSDL site.
I have opened Mutual funds with my NRO account, not I want to do redemption of those mutual fund money to my NRE account. is it possible? what taxes I should be aware of?
Hi Shwetha,
Consult your CA for better understanding because in this process some forms are required. CA will give you a better insight of the process.
IN NRO account the any rental income deposit which is below the tax net, whether the IT will deduct 35%
can i deposit money in my PPF account which was opened before NRI status?
Hi Milind,
No you cant contribute in it as now you became NRI.
I have an Icici super pension plan since 2008, now I am RI should I change status from NRI to RI. What are the tax implications?
Hi Beulah,
As per my knowledge, yes, you should change the status. Income will be taxable as per the slab.
When I was an Indian resident I have invested in some mutual funds now I Became an NRI how to change my status
Hi Kamalakannan,
You should update your status to your registered broker or distributor.
hi, I have recently become NRI. Do I need to update the same for mutual funds?
Hi Vikrant,
Yes, you need to update your status in MF too.
what happens in a mutual fund account when changing resident status?
Hi Susheel,
You need to update your status in the AMC’s.
Being an NRI, when I fill-up the form for a new NPS account, how does the repatriation status of the account change the way I can move funds to and from my account?
I am planning to visit my children in Canada on a visit visa for a longer period & will apply for a super visa my children are PR holder and I am dependent on them What will be my status NRE OR Resident Indian.
Hi Ravi,
It depends on the number of days you live there.
When NRI returned to India for good, how many days the NRI status remains.
Hi Royce,
Your NRI status after returning to India will be deemed as RNOR status for 2 years.
Hi, I am a temporary worker in Canada, I came before 1 year and my work visa will come to an end this year in August. My question is, do I need to open NRI or NRO account for investing? because I will be going back to India within 6 months from now on.
Hi Manimaran,
As per my knowledge, you need to open the NRE account for investing.
Hi,
I am planning to move out of India for a few months to a year.
My questions are
1) Can I change my accounts to NRE/NRO immediately after receiving my Residency Visa abroad or do I need to wait until I have actually lived abroad for say at least six months?
2) Also, if I change my status immediately, is any future income earned by me abroad, from that point on, not taxable in India?
3) On the other hand, if I change my status after 6 months of living abroad, will the income I’ve received before that in that particular financial year, be taxable in India?
For ease of understanding, let’s assume I’m moving out of the country on 1st of April, 2021.
Thank you.
Hi Wian,
1.) Yes, you should convert your resident saving account as soon as you become an NRI.
2.)Yes, it won’t be taxable in India.
3.) No, it won’t be taxable in India
Being an NRI income accrued or received outside India will not be taxable in India.
What to do to become a resident from NRI status.
Hi Pradeep,
According to Income Tax Act, there are certain conditions for that.
I am currently investing in mutual fund and I am planning to go to Canada for my higher studies and how will it affect my current mutual fund investment?
Hi Vishnu,
The mutual funds can be held when the resident status changes.
Hi, I have investments in india and I am visiting India in March 2021 and planning to intimate all AMC’s about my status changing to NRI. My questions if I want to continue investing in india through NRE/NRO account can I still do that? Also, funds will transferred from Canada to India after I have paid taxes here, do I have to pay taxes on the capital gains that I will be making in India or Canada?
Does India have dual taxation treaty with Canada?
I also have invested in ELSS schemes in mutual funds, what options do I have? Do I have to withdraw my investment or can I hols it? I have certain units which are locked in for 3 years as I am still investing via SIP from resident savings account.
Will there be Bank a/c numbers change with resident status?
Hi Ramesh,
No, it will remain the same.
I have recently become an NRI and have a savings account in India. I have no intention to transfer money to India or vice-versa. But I use my Indian saving account to pay bills generated in India for my parents. Do I still need to open an NRE or NRO account?
Hi Rathi,
Yes you need to open an NRE or NRO account
I was an NRI. I have returned to India for good in September-2020. I am confused as to whether to inform the Banks to convert my NRE/NRO Accounts to Resident Saving Accounts or Resident Foreign Currency Account. I have some NRE FDs as well as maturing later.
Hi Nitin,
Yes, you have to inform your bank about the status. Continue your FD’s till maturity.
Can I convert my resident Demat account to an NRO non-pis account?
Hi Ramakrishna,
As per my knowledge you can’t.
I have to convert my account to NRE/NRO and wanted to understand how it will affect my current investments?
Hi Ankit,
There will be no big impact on your investments. Now your all investment will be made through NRO or NRE account.
Hi Hemant,
I am Ram, Staying UK For 3 Years, Last Year I opened Trading Account In India and started trading. Now I will Come to Know that I can’t do that as I am NRI. I Didn’t earn any money, went to loss only. Please Let me know what can I do, is there any penalty ?
Ram
Hi Ramesh,
There will be no penalty.
I was nri and have NRI deposits I have cancelled visa and not returned to India during March 2020. What to do with my nri fd accounts?
Hi Sasikumar,
You can hold it till the maturity.
When converting resident to nro, what to do with balance in resident account?
Hi Manisha,
I think, When we convert resident account to NRO accounts the balance becomes the balance of NRO account.
I came across your this wiseNRI first time I found so much of information so simply explained for the NRI Thank you so much for all the information provided here I found it very helpful indeed. Looking forward to more useful interesting information for the NRI. Thanks again!
Thanks for appreciating Dr VS – must share wiseNRI with your friends:)
I am already a NRI for several years now and planning to invest in MF and equity shares from my NRE account. But my KYC status is Resident Kindly guide me on how I can change my KYC status from Resident to NRI status?
Also my NRE account in India is not PIS activated Please guide me on how to get my PIS activated for my NRE account.
Thanking you in anticipation…
Dear Dr VS,
You again have to fill KYC form for modification – you will require passport & foreign address proof.
For PIS Check this
https://www.wisenri.com/pis-portfolio-investment-scheme-for-nri/
I was NRI in UAE for past 7 yrs and returned to India on 1 Aug 2020. Thus only 4 months out of India. If I can go to UK for 2 months on visit visa, can I retain NRI status for this F/Y?
As per my knowledge, Your status will be considered as NRI for this year considering if your total Indian taxable income is less than 15 Lakhs.
After working 23 years in the Gulf, i have returned. If I change my NRE account to resident, my NRE FD is taxable even though i am not coming under taxable limit?
Hi Sankar,
As per my Knowledge Yes it is taxable after returning to India, Deduction under Section 80TTB up to ₹50,000 may be claimed on the interest income from FDs only if an individual qualifies as a resident senior citizen (60 years or more) in India.
I inherited a property in India . I am in US. How do I transfer sale proceed to US ? Any limit on amount ?
I registered few companies in India and my residency status has changed from Indian Resident to NRI what do I need to do and how will it effect me?
What happens to my savings account in india after I become an nri ?
Hi Priyanka,
You need to inform the bank about the residential status change and can convert it to the NRO account.
I am currently an NRI and would be returning to India in couple of years time. I plan to invest in ETFs here. My question is, once I return to India, can I continue to own these ETFs or I should sell them? Are there restrictions on holding foriegn assets (in this I am referring to only financial assets like ETFs or Bonds) when I return? Do i have to pay tax two times (once in the foriegn country and again in India), when I redeem the investments?
Hi Sunil,
As per my knowledge, you can hold foreign assets while you return to India. However, it is preferable to open an RFC account for the same while you return to India. For taxation purpose, you have to check DTAA Between the countries.
Dear Anand, thanks for your reply and the hint of RFC account! Really appreciate your promt response.
Mr. Hemant Beniwal
Thanks for writing the articles to increase the knowledgeable of NRI’s. Your articles are very informative.
Thanks Harmeet 🙂
I was an NRI. Came to India in Dec 2020 expecting to go back on another job opportunity. Now I am not planning to go back. How can I change the status from NRI?
You just need to inform your bank about it, and also update your KYC as per resident Indian.
Sir the lack of proper guidance in even simple issues is mind numbing. I was unaware I needed to inform of change of status to bank (NRI to RESIDENT) it has been 3 years since I returned to India, can I inform now after 3 years to change my NRE account to normal resident account..I hope there will be no imprisionment or huge penalty. I want to fix this issue as a law abiding citizens.
Hi Varun,
There is can be some penalty it can be in some sort of monetary terms or they might cease the account, but you won’t have to face imprisonment.
I was staying 10-Sept-2012 to 12-June-2019 at out of India. Should I get the RNOR status?
Hi NM
To be eligible for RNOR status you need to complete at least 7 years abroad.
I am staying in Israel for work for the last 3 yrs. If I fill the documents, what should I write in my country of residence?
Hi Anu,
The country of Residence would be Israel only.
I hold funds in an offshore account as NRI. After I become resident can I continue to hold them?
I’m already an investor in mutual funds. I want to change my resident account to NRE / NRO account. What will happen to my existing investments and SIPs?
hi, Your savings account will get changed to the NRO account. You will have to inform your mutual fund company regarding your change of status, and then you will have to update your KYC as NRI, It won’t affect the funds.
I want to know how long I can hold RNOR status after I return to India after 38yrs as NRI.
hi, You Can hold it for a maximum period of 3 years.
Thanks Rohit. Is there any official document ( from RBI) to support this so that I can produce the same to my local bank. Thanks once again. Sorry for the late reply????
I have opened trading and Demat account with upstox and buy some shares and once I received the statement it is showing wrong status resident instead non-resident I want to know how I can request to correct my status?
your KYC might be as Resident Indian that is why it might be showing so, you can still contact their customer service regarding it.
How long can I delay the process of intimating the NRI status?
Hi Prabhakar,
As per FEMA, you have to inform the bank on an immediate basis.
I have f d’s in NRE account. And got interest too. How can I repitrate It in USA?
Hi Sonal,
You can transfer through Net Banking.
Hi Martes,
Firstly, you have to inform the bank about your NRI status, and as per my opinion, you can continue the account on “either or survivor” basis. For better confirmation, consult with your bank.
My parents made joint savings bank accounts with me while i was a resident and a minor. Now am an NRI. Does this account have to be closed ? I heard an NRI can continue to have a resident bank accont with close relatives, on “either or survivor” basis, but would like some confirmation, thank you.
HI Martes,
You can continue with this account but your mother or father should be the first holder of this account.
I have changed my residence status from resident to NRI. I have mutual fund investments in India. Can I hold them?
Hi Kiran,
Yes, you can hold those MFs but change the status with Mutual Fund Companies.
What about Indian pension account maintain nro a/ c for green card holder
Hello!
I have started investing in mutual fund through SIP from Resident Saving Account about few months ago. I am NRI from last 6 years. I have not open NRE or NRO Account because of I haven’t got legal status yet. What should I do? Should keep doing my investment now once I gor legal status Can I change my Account to NRE/NRO and also able to change my KYC through PAYTM Money as NRI. Please let me know I have to find information but i haven’t got anything yet.
Thanks.
Hi Hardik,
You are NRI from the last 6 years – what kind of legal status you are waiting for?
I will suggest you convert your savings account to NRO & then change Mutual Fund KYC.
Can I hold India Salary account and NRE account both if I have a double tax certificate from my employer?
Hi Syed,
You can have only one type of accounts – either resident saving account or NRE & NRO accounts depending on your status.
Hi Nagesh,
An NRI cannot invest in PPF, however, if one’s residential status subsequently changed to NRI, the account was allowed to be run till maturity
Hi Zoya,
Yes he or she can hold till maturity.
NRIs are not permitted to invest in PPF ? and all other small savings scheme.
Hi Nagesh,
If you had opened ppf before being an NRI you can hold it till maturity. and for other small saving schemes NRI’s are not allowed to invest.
I am currently an nri since 3 years but till now using normal saving account. I have recently invested in MF (75000 INR) and Stock (150000 INR) back from 2 months. What should I do now Can I carry on with normal saving account?
Hi Santosh,
As the residential status changed, either you close your existing savings account or convert it to an NRO account.
If want to change status from NRI to resident status what steps to take?
Hi Surinder,
You have to inform your bank regarding changing status.
I moved to NRI status and I have rental income in Kerala. Can I deposit it to my joint account with my mother or to my NRO account only?
Hi Shilpi,
In my opinion, you should go with the NRO account.
when can I open NRE account?
Hi Tarun,
An Indian Citizen who have gone abroad for gainful employment or for carrying on a business or vocation or for any other purpose in circumstances indicating an intention to stay outside india for uncertain duration, can open a NRE account
What if I have more than 1 savings account in India and I have opened a separate NRE/NRO account also then I have to convert my existing savings account into NRE/NRO?
Yes Priyank.. you can’t have savings account.
One is allowed to repatriet the income earned from a NRO account. What about the initial amount at the time of conversion that was in the resident account? Can that also be repatriated? Thanks
Yes Soli – that can be done after paying taxes in India.
Is interest/accrued interest on FCNR/NRE deposits taxable when one becomes Resident.
Hi Surya,
Yes, it will be taxable but if you can maintain RNOR Status – you can avoid tax. I will soon write a post on this.
Surprisingly few banks even don’t allow you to continue NRE FDs after the status change – a technical issue on their side.