You may like to see similar questions and answers below
For a person to qualify as Resident Indian she should stay in India for more than 182 days in a year or she should stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year.
Depending on whether one is in India for 60 days or more in the relevant financial year (you have mentioned that her stay exceeded 365 days in 4 previous years), your daughter’s residential status would be that of a Resident Indian or an NRI.
The period of stay in India due to lockdown will not be counted for determining the tax residency.
A circular to be issued excluding the period of stay of these individuals up to the date of normalization of international flight operations, for determination of the residential status for FY20-21.
The circular says that that those who have been quarantined in India on account of coronavirus on or after March 1, 2020, and departed on an evacuation flight on or before March 31 or have been unable to leave India on or before March 31, their period of stay from the beginning of the quarantine to the date of departure or March 31 will not be taken into account for determining tax residency.
You can check this circular, to verify its applicability to you.
You can always check status at calculator provided at income tax website (external link)
Accordingly, you should inform bank about change in residential status immediately and change the type of account (NRO/NRE Account).
Also you have to open account as resident for MF and tax implications will arise at the time of transfer of mutual fund units. Tax rate will depend on type of fund (equity based or debt based) and period of holding.
Mutual funds whose portfolio’s equity exposure exceeds 65% are equity funds.
Equity funds held for 12 months or more are considered as long term, whereas it is 36 months in case of debt funds.
Short term equity funds are taxed at 15% and debt funds are taxed at slab rate.
Long term equity funds are taxed at 10% (if capital gains of exceeds Rs 1 lakh) and debt funds are taxed at 20% after indexation.