Hi All, I have moved from India to the USA in March 2023 for employment and have not visited India since then. I currently live and work in the USA. Still have an Indian resident savings account. I also have Indian FDs, a residential property generating rental income, mutual funds, shares/ETFs, PPF and Sukanya Samriddhi accounts. Want to regularize everything according to current FEMA/RBI rules. Could someone please clarify:
1. Should my resident savings account be redesignated as an NRO account?
2. Should I open an NRE account as well?
3. What should happen to my existing FDs?
4. Can I continue holding my existing mutual funds and shares?
5. Can I continue making new investments in India, and through which type of account?
6. What should I do about PPF and Sukanya accounts opened before I became an NRI?
7. Can rental income and home-loan payments continue through an NRO account?
Also I will be in USA for 1 or 2 years and will return back to India .Would appreciate guidance based on the current FEMA/RBI rules.
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NRI since March 2023 – resident savings account and FEMA compliance
To regularize your financial profile in India under FEMA, inform your bank to convert your resident savings account and FDs into NRO status, update your Demat and Mutual Fund KYC records to NRI status, and route all Indian-sourced earnings like rent through the NRO account. Opening an NRE account allows you to seamlessly transfer US savings tax-free back to India, while existing PPF accounts can be maintained until maturity. Since your relocation is planned for 1 to 2 years, keeping these standard NRO/NRE structures active will ensure full legal compliance and allow a smooth transition back to resident status when you return to India.
Yes , NRO & NRE account is must for NRI .NRO account is to manage income in India, and NRE account is to manage money transferred from abroad , further Income in NRO account is taxable and income in NRE account is tax free.
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