I am a Non-Resident Indian (NRI) residing in the US and have a Non-Resident External (NRE) account with an Indian bank. What are the tax implications for starting a Fixed Deposit (FD)? Also, what if I come back to India and become a resident again?
– Name withheld on request
For NRIs, interest on deposits in NRE account is not taxable in India. However, when you decide to return to India, you will need to convert all your NRE accounts and FCNR deposit accounts into resident accounts. Once you declare your intention to reside in India and convert these accounts into resident accounts, the interest earned from NRE deposits will be taxable in India.
Is it mandatory for NRIs to declare house property abroad in their Income Tax Return (ITR)?
– Dilip Saxena
It is not mandatory for NRIs to disclose the details of assets held by them in India in the ITR filed by them. Resident taxpayers having total income of more than 50 lakh is required to report your assets and liabilities in the schedule included in the ITR.
My PPF account is maturing. Can I transfer the proceeds to buy property in the UK?
– Name withheld on request
The government had notified that a resident who later becomes a non-resident during the maturity period of a PPF account can continue to subscribe to it till its maturity. This is only allowed on a non-repatriation basis.
The government amended this notification and said that once the resident becomes a non-resident in India, the PPF account will be treated as closed and no fresh deposit can be made. However, this notification was put on hold.
Hence, as per the current scenario, a non-resident who continues to make deposits in the PPF account till maturity can do so only on a non-repatriable basis.
Archit Gupta is the founder and CEO of Clear.in.