I was deemed an NRI few years back, according to Income Tax laws, because I had to be outside India for employment purposes for more than 184 days in a financial year. I had opened a Post Office Monthly Income Scheme (MIS) account when I was back in India. Honestly, back then, I wasn't even aware what constituted an NRI in the eyes of IT dept as we always believed NRIs were those who left India & had no intention of returning as a citizen. Consequently, I wasn't aware of the restrictions on NRI investments in India.
I only recently learned while browsing online that NRIs are not allowed to invest in Post Office Savings schemes including MIS & other time deposits!! As of now, I am again a Resident because in FY2020-21 I was home due to the global pandemic & my stay in India is now more than 182 days in the FY.
1. What are my options now? Should I prematurely close the MIS account? Should I wait for its Maturity?
2. Can I still open an MIS account if I become a 2nd account holder in a Joint account for MIS along with one of my Resident Sisters?
24 September 2021
If you have return back for ever, and also if the account is not suspended, continue it till its maturity. No need to alter the present status, till any notice.
CAclubindia
