How long NRE account can be maintained 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. The reasonable period can be assumed as 3 months.

Is NRI fixed deposit taxable?

NRE fixed deposits do not attract taxes on the principal or interests earned from the deposits. Consequently, NRE fixed deposits are completely tax-free.

How can I get RNOR status?

The conditions clearly imply that you should have spent at least 7 years abroad, to qualify for RNOR on return. Going by the rules, any returning NRI who has spent more than 7 years abroad, will get to be in this transitional status for at least 2-3 assessment years.

Which income of NRI is taxable in India?

NRI or not, any individual whose income exceeds Rs 2,50,000 is required to file an income tax return in India.

How can I get NRI refund of TDS?

To claim a refund of the TDS Deducted, the NRI would be required to file an income tax return in India after the end of the financial year. While filing the Income Tax Return, the NRI would be required to self compute his income and the income tax liability as per the slab rates.

What are the tax implications for an NRI returning to India?

In order to potentially reduce the taxability & ease the finances of an NRI returning to India, it is mandatory to understand the Income Tax implications for a returning NRI. Income earned in India is taxable for an NRI in India. Income earned outside India is not taxable for an NRI in India.

Can returning NRI keep NRE/FCNR deposit till maturity?

The Returning NRI can keep the NRE/FCNR Deposit till maturity. However, except the provisions relating to rate of interest and reserve requirements as applicable to FCNR(B) deposits, for all other purposes such deposits shall be treated as resident deposits from the date of return of the account holder to India.

Is interest earned in NRE fixed deposits tax free in India?

Where almost all the Investment instruments in India are subject to TDS and are taxable for NRIs, the Interest earned in NRE fixed deposits is Tax-Free in India and thus attract no TDS. (Please note that this is as per India tax law, your country of tax residency may ask for tax on Indian NRE deposits)

What is rnor status for NRI in India?

Resident But Not Ordinarily Resident (RNOR): A RNOR status is given to the Indian Residents. There are certain criteria that defines this status, which are: Now, we know the criteria of being an RNOR. But, if an NRI returns to India, for how long will he/she be able to hold the RNOR status?