Foreign assets include NRE & FCNR deposits maintained in India ?
This query is : Resolved
19 December 2024
sir;
Does foreign assets include NRE & FCNR deposits maintained in India ? These details are required to be disclosed in schedule FA ( foreign assets) in case of resident assessee?
please reply. Thanks in advance.
Does foreign assets include NRE & FCNR deposits maintained in India ? These details are required to be disclosed in schedule FA ( foreign assets) in case of resident assessee?
please reply. Thanks in advance.
20 December 2024
FCNR and NRE deposits can be closed immediately or can be allowed to run up to maturity. However, you must re-designate your NRE FD as a resident FD. If you choose to continue till maturity, you will get the contracted rate of interest until maturity. Premature withdrawals/closure will attract penalty as per terms of the deposit.
For FCNR deposits and NRE account/deposit, you also have an option to transfer the balance to a Resident Foreign Currency Account (RFC). No penalty is payable for premature withdrawal of NRE/FCNR accounts in such cases.
As per FEMA, you are resident from day 1 of return. Therefore, you cannot make investments as an NRI. Similarly, you cannot hold bank accounts that only an NRI can own.
Therefore, you must inform your bank about the change in your residential status.
For FCNR deposits and NRE account/deposit, you also have an option to transfer the balance to a Resident Foreign Currency Account (RFC). No penalty is payable for premature withdrawal of NRE/FCNR accounts in such cases.
As per FEMA, you are resident from day 1 of return. Therefore, you cannot make investments as an NRI. Similarly, you cannot hold bank accounts that only an NRI can own.
Therefore, you must inform your bank about the change in your residential status.
20 December 2024
Sir for FCNR account there is an option to hold till maturity or convert into RFC once becomes resident. If not convert into RFC then this account is required to be disclosed in schedule FA. Because this account opened in India. And schedule FA does not accept country India.
20 December 2024
No. All the accounts opened/held in India are to be declared under 'Do you have a bank account in India;' in Column 13 of Schedule 'Computation of tax liability on total income' of ITR.
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