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.

What can I do with my NRE account after returning 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.

How much foreign currency can I keep at home in India?

You can indefinitely retain foreign exchange upto US$ 2,000, in the form of foreign currency notes or travellers’ cheques (TCs) for future use. Any foreign exchange in cash in excess of this sum, is required to be surrendered to a bank within 90 days and TCs within 180 days of return.

How long can I keep foreign currency in India?

On return from a foreign trip travellers are required to surrender unspent foreign exchange held in the form of currency notes within 90days and travellers’ cheques within 180 days of return. However, they are free to retain foreign exchange upto US$2,000, in form of foreign currency notes or TCs for future use.

Can a resident Indian open a dollar account?

A resident of India can open, hold and maintain foreign currency accounts in and outside India. A person resident in India can open a foreign currency account in India with an authorised dealer. It is opened, held and maintained in the form of a current or savings or term deposit account.

Is keeping foreign currency a crime?

It is legal to keep the foreign currency but the catch is that there are certain rules set against holding a foreign currency for long. It is never too late to return your leftover foreign currency, be it foreign currency notes or FCDD / Foreign currency demand draft.

When can you return unused foreign currency?

According to Foreign Exchange Management act, 2000, you must surrender the unused foreign exchange within 180 days of your return from abroad. However, if you so desire you can keep foreign exchange up to USD 2,000 in your Resident Foreign Currency (Domestic) or RFC (Domestic)Accounts .

How do I claim my 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.

How long can an NRI stay in India?

An NRI, whose taxable income exceeds Rs.15 lakh stays in India for 120 days or more, then such an individual further needs to check whether his stay in India is 365 days or more in the immediately preceding 4 years.

What are the tax implications for NRIs returning back to India?

Returning NRIs can save tax on their overseas income through their Residential Status until a period of 3 years after return. You may be curious to know more about that. This article is an attempt to clarify the tax implications for NRIs returning back to India.

Can an NRI open an NRE account in India?

An NRI can maintain NRE accounts with banks in India and the interest income from them is not taxable. But the account holder has to report to the bank within 30 days of coming back to India for permanent settlement.

Is it easy to return to India (R2I)?

Returning to India (R2I) is not a simple task. There is a lot of thinking and decisions to be made before you come to a conclusion. Also, a lot of facts have to be kept in mind before you move back. Things may not be as similar as it was when you left the country.