My aunt is an Indian citizen but a resident of Spain for many years. After my uncle passed away, has been filing her Indian ITRs as a ‘Resident’, even though she clearly qualifies as an NRI because she does not stay in India for the required number of days.

She now wants to regularise her status and open the correct bank account. We want clarity on whether she should open an NRO account or an NRE account, what practical differences both accounts have, and how repatriation limits apply. She may need to repatriate about INR 1–1.5 crore abroad.

Additionally, should her next return for AY 2026-27 be filed as ‘Non-Resident’ even if the NRO account is opened now during the middle of FY 2025-26? Also, will any issue arise in opening NRO account before filing return with correct NRI status because earlier returns were filed as ‘Resident’ despite her being NRI during those years?