Nri bank account

Once you return to India permanently and if you qualify as 'resident' by staying minimum 182 days in a financial year.......... still you remain 'Resident but Not Ordinary resident' till you qualify any one of following conditions:

• The individual has been a non-resident in India for nine of the past ten tax years,  OR
• The individual has been in India for a total of 729 days or less during the seven tax years preceding the relevant tax year.

RNOR is treated equivalent to NRI for IT purpose i.e. RNOR is taxable only on Indian sourced income.

So, for FY 2017-18, you were NRI, but for FY 2018-19 you will be RNOR.

RNOR can maintain a Resident Foreign Currency (RFC) account for foreign currency assets, which were held outside India at the time of their return. Foreign exchange amounts received as pension or benefits from employers outside India, gifts, or proceeds of life insurance policies in foreign currency may be credited to this account.

This includes –

• Any interest or dividends from foreign securities
• Any capital gains from the sale of foreign assets including property
• Any withdrawals made from foreign retirement funds
• Interest earned on Foreign Currency Non Resident (FCNR) bank account or deposit held in India (until maturity).
• Interest on foreign currency accounts held in India.