6 Responses to Banking for Returning NRIs in India

  1. Yatin Thaggarse says:

    I have one question about transistion from Resident to NRI status:

    (1) I have a Resident bank account in a cooperative jointly opened with a resident brother.
    (2) I am a share holder in the cooperative bank, started when i was a resident.
    (3) I move abroad and become an NRI.
    (4) What happens to the bank account? Do I have to declare non-residential status to the bank?
    (5) The cooperative bank does not deduct TDS for residents who are share holders. Does this apply for NRIs?
    (6) I file returns considering the interest tax burden applicable in my case. Is this allowed?

  2. Yatin,
    You should inform the cooperative bank about your change in residence. I am not familiar about the cooperative bank’s rules, but your resident account may have to be changed into a NRO bank account.

    Regarding the interest on resident account – it is taxable. Hence you should disclose it in your tax returns.

  3. NRI Banking says:

    Thanks for sharing the info…

  4. Yatin Thaggarse says:

    I spoke with the bank and they informed me that the account needs to be changed to NRO status if the first holder is an NRI, in which case they will deduct the TDS applicable (30%) although I hold shares. However if we juggled the first and second account holder and the primary account holder remains resident and also has the bank’s shares; no TDS would be deducted and this was what I did. So all it requires is an approval from each account holder to make this change.

  5. Bittu says:

    I have a query.
    I am a NRI, I Have took a 10 year FD in my NRE account. But I am permenantly shifting to India next year. So whether the FD Interest income as non taxable in nre accounts remains non taxable or taxable after I shift to India?

  6. Bittu,
    After you shift to India and become a resident in India, Interest on NRE FDs become taxable. NRE FD interests are tax free only till such time you are a NRI.

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Delhi – Odd Vs Even Formula

January 2, 2016January 2, 2016

The actual success of the Delhi government’s odd-even formula will be known only by January 15, but if the response of most Delhiities on the first day is any indicator, then the risk taken by Arvind Kejriwal’s Aam Aadmi Party seems to have paid off.

The local government will review the effect on pollution after the 15-day trial and consider including two-wheelers in the second phase of the scheme.

For more click here