I was working with JSW Steel,karnataka-For 4 years and from 2016 I moved to Saudi Arabia,and currently working as a mechanical engineer in Saudi Arabian government company...Now I made some investments in mutual funds through my indian bank accounts(icici)-which I haven't converted to NRI/NRO account......while redeeming will it be a problem(higher taxation will get charged) as I haven't converted my savings bank account as NRO..
My monthly sip investments in mutual funds- 30000/month
kindly advise...on taxation ,I have to convert to NRO Account. / it is not necessary to convert
There is no time limit for converting a savings bank account to an NRO account.
However, it is advisable to do it immediately after one becomes a non-resident.
There is no specific penalty provided for not converting an ordinary savings account into a non-resident ordinary account.
However, Section 13 of the Foreign Exchange Management Act, 1999 provides that if any person contravenes any provision of this Act, or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorisation is issued by the RBI, he shall, upon adjudication,
*be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to Rs 2 lakh where the amount is not quantifiable.*
Where such contravention is a continuing one, further penalty that may extend to Rs 5,000 for every day after the first day during which the contravention continues.
*It is, therefore, desirable that an account should be converted into an NRO account without delay.*
Regards
CA. Raj Doshi
CAclubindia
