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Vivek Lala |301 Answers |Ask -Follow

Tax, MF Expert - Answered on Oct 25, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more

Question by krishnan on Aug 13, 2024Hindi

hello Sir! good day. I was an NRI for 14 years in Singapore and still continue to work for the organization in Singapore and draw my sal in Singapore in my account in Singapore . I hold NRE FDs /FCNR deposits/ NRI SB /NRO account . I returned to India due to some personal issues and my organization allowed to work from home . I still hold Employment pass in Singapore . I am still undecided about returning to Singapore which my company is okay with this idea. I am at the moment in cross roads . My question is I have been filing my income tax every year and for AY 2024-25 I filed RNOR status as i was not away from India for not more than 180days . My question is 1. Do I have to change all my NRE and FCNR deposit which i hold in a nationalised bank to RFC account and convert my NRE and NRO account to residency . I am not clear at the moment about staying back in India but can go back to Singapore still qualifying for the 180days rule. 2. Do i have to clsoe my account in Singapore and bring the proceed to India?. 3.Whom should I intimate about my account status. To the bank where i hold deposit ? thanks

Ans: Hello, need some more details for the same
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Question by Prem - Apr 06, 2022Hindi

Shall appreciate your expert advice based on the following facts: Am 59 years old & came back to India on 6th November ’20 after my stint with an MNC overseas, for 14 years & 9 months. What is going to be my status for the previous financial year viz. 2020-21 as well as current financial year i.e. 2021-22? All my overseas salary up to 5th of November ’20 were transferred to my NRE Rupee or US $ fixed deposits. I do have some small income in the form of dividend on shares, interest on ordinary rupee FDs, house rent etc. Most probably, I will not be working abroad any more. What will be the tax treatment of my NRE deposits which are going to mature in future or have been renewed after my return to India in November’20? As per my standard instructions to the banks, the same are being auto-renewed on due dates. I would like to know if there are any specific investment products other than NRE/RFC FDs, for the NRIs whose status has changed in the current fiscal year or is going to change in near future. Most all my savings are in INR only, but classified under NRE deposits.

Ans: The status of FY2020-21 would be NRI and the status in FY2021-22 would be RNOR (Resident but not ordinarily resident). So you need to convert the NRE to resident account immediately after returning to India. If you fail to convert your NRE account within 3 months of the return, it will be considered as a violation of Foreign Exchange Management Act (FEMA) and attract a penalty.

After you return to India, any interest earned on NRE account will be taxable. You can opt to transfer your funds from NRE account to RFC account upon return

Though there are no specific products for returning NRIs, there are a whole range of investment options available for you apart from Bank Deposits. The most common are mutual funds, bonds, stocks, insurance, etc. You can choose to invest based on factors that suit you including risk, return, liquidity, etc. Options like PPF that are not available for NRIs become available when your status changes to Resident Indian.

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