If a NRI having stayed out of India from year 1997 is planning to return back to India on June 30, 2017. What would be the impact on his bank accounts and various types of deposits.
1. Money in NRO Account will be taxable from day one as it is now also and account will get converted into Resident Account.
2. NRE Deposits – If the NRI has deposits maturing up to year 2022. Will NRI have to pay tax on interest income on these deposits from year ending March 31, 2018 or do will have to pay tax on maturity in 2022. If NRI conversts this account to RFC Account what is the benefit.
3. Interest on NRE Account – After coming to India on June 30, 2017 if NRI goes on Visit Visa and stay out of India for 3 months can NRI claim NRE Status for year ending 31 March 2018 so he does not pay tax for that year and pay only from year ending 31 March 2019.
4. FCNR Account – NRI has various FCNR deposits maturing in year 2018, 2019, 2021 and 2022. If he returns back on June 30 2017 do he have to pay tax on interest income on FCNR Deposits from year ending 31 March 2018 or the interest income is exempt till what year.
5. Investment in Shares, Mutual Funds (Equity and Balanced) - If NRI afer return invests money in share market and keeps the investment for more than 1 years and sells shares or mutual funds does he need to pay tax on income earned from shares or mutual funds. What is taxation in case of Debt Mutual Funds.
Please share your views especially on taxation of interest on FCNR deposits. Till what year they are exempt
Regards
Anil Mehta
anilmehtas @ gmail.com
CAclubindia
