Actions to be taken by nri on returning back to india

Others 164 views 2 replies

Jalpesh

Internal Auditor

51 Points Joined October 2013

Hello Professional Colleagues,

I want to know what happens to my NRE account once i return back to INDIA permanently.

I am set to return on 17th October 2017 (was out for employment). As per my understanding of the provision mentioned in the IT act relating to residential status, i will continue to be NRI for F.Y 2017-18 since my stay in INDIA for F.Y 2017-18 will be less than 182 days. Also, i will not be satisfying the second basic condition : 60 days or more in F.Y 2017-18 and 365 days in preceding 4 previous years.

Do i need to convert my NRE account to normal savings account in F.Y 2017-18 itself ??

If yes, then what happens to any arrears that i receive from my overseas employer with regards to full and final settlement after i reach India ? Will it be taxable ?

Thanking you'll in advance.

Replies (2)

neeraj gupta

1138 Points Joined March 2017

if the move is anticipated to be permanent i.e no intention of going back in near future. then change NRO accounts to Resident accounts and close NRE accounts.
full and final settlement overseas will not be taxable in India since you are NRI for the FY.