I’m a non-resident Indian (NRI) residing within the US and have a non-resident exterior (NRE) account with an Indian financial institution. What are the tax implications for beginning a set deposit (FD)? Additionally, what occurs if I return to India and turn into a resident once more?
— Title withheld on request
For NRIs, curiosity on deposits made in NRE account should not taxable in India. Nevertheless, if you resolve to return to India, you have to convert all of your NRE accounts and FCNR deposit accounts to resident accounts. When you declare your intent to remain in India and convert these accounts to resident accounts, the curiosity earned from NRE deposits shall be taxable in India.
Is it obligatory for NRIs to declare home property overseas of their revenue tax returns (ITRs)?
— Dilip Saksena
It isn’t obligatory for NRIs to reveal particulars of belongings held by them within the ITR filed by them in India. Resident taxpayers with complete revenue in extra of ₹50 lakh are required to report their belongings and liabilities in a schedule included within the ITR.
My PPF account is maturing. Can I switch the proceeds for buying a property within the UK?
— Title withheld on request
The federal government had notified {that a} resident who subsequently turns into a non-resident in the course of the maturity interval of a PPF account might proceed subscribing to it until its maturity. That is solely allowed on a non-repatriation foundation.
The federal government amended this notification and mentioned that after the resident turned non-resident in India, the PPF account can be deemed closed and no recent deposits may very well be made. This notification, although, was stored on maintain.
Due to this fact, as per the present situation, a non-resident who continues to deposit in a PPF account till maturity can solely accomplish that on a non-repatriable foundation.
Archit Gupta is founder and chief govt officer, Clear.in.
Supply: Live Mint