NRO Conversion vs Closing Account and Gifting to Mother (NRI Since 2016)

Gurminder (Supervisor) (24 Points)

07 May 2025  

Dear Expert,

 

I am an NRI since 2016 and have a resident savings account in India. I have not converted it to an NRO account until now. The funds in this account were saved from my foreign income.

 

Now I want to regularize the situation. I see two options:

 

1. Convert my resident savings account to an NRO account (with proper NRI declaration), OR

 

 

2. Close the account and gift the funds (about ₹21 lakhs) to my mother by cheque (she is not a taxpayer).

 

 

 

Which is safer and more compliant with FEMA and Income Tax rules?

 

I want to avoid future issues. Please advise.

 

Thank you.