What happens to my NRE account when I return to India?
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What happens to my NRE account when I return to India?
NRE accounts are ideal for inward remittances (foreign earnings) and freely repatriable. However, upon your return to India permanently, you will have to convert your existing NRO / NRE savings account and deposits into resident savings account and deposits.
Can we hold NRE account after returning to India?
You cannot maintain your NRE account and NRE FDs when you are an RNOR. You need to convert your NRE account to resident account immediately upon returning to India. You need to convert these accounts to resident accounts within a reasonable period of time.
Does NRI return to India?
NRI Recently Moved Back to India Returning NRIs assume RNOR (Resident, Non-Ordinary Resident) status when: You have been an NRI in 9 of the 10 financial years preceding the year of your return. You have lived in India for 2 years or less (729 days or less) in the last 7 financial years.
What is account for returning NRI?
The resident account for a returning NRI to maintain their money from the time they were NRI in foreign currency is called a Resident Foreign Currency (RFC) account. Any NRI who has returned to India for good is eligible to open an RFC account.
How long is NRE valid?
Accounts And Deposits
| Tenure | NRE | NRO |
|---|---|---|
| Minimum | 1 year | 7 days |
| Maximum | 10 years | 10 years |
Can RNOR hold NRE account?
Under RNOR, you can not only maintain the NRE/NRO/FCNR accounts but also open a “special” account known as RFC account (Resident Foreign Currency Account). The interest earned on these accounts ain’t taxable.
Can RNOR have NRE account?
As long as your tax status is non-resident Indian (NRI), the interest earned on an NRE account is exempt from income tax in India. You may continue to hold an NRE account even after the status change only if you have the permission from Reserve Bank of India (RBI) to do so.