Return 2 India'' is much cherished dream but the fears
re: ''can or cannot continue'' or say ''to or not to disclose
overseas assets'' are most dreaded ones. Fortunately NRIs
returning home for settlement can happily "keep the
cake and eat it too". Returning NRIs can freely continue
to hold overseas movable as also immovable assets; maintain
foreign currency accounts in India and also earn tax free
income in India & abroad.
NRIs returning home come back with lot of hopes, anxieties,
uncertainties - quite often not sure about their settlement
plans-mis-information re. rules & regulations, all
add to complete a perfect picture of confusion, despair
& doubts. Fortunately Foreign Exchange Laws, Tax Laws
& Banking Regulations for Returning NRIs, viewed from
a correct perspective, are absolutely simple and liberal.
The same are discussed hereunder
Movable Assets Abroad
Immovable Assets Abroad
Bank Accounts Abroad
Bank Accounts in India
Shares and Securities in India
Other Assets in India
All the above topics are explained in simple language
Copy of relevant Section / Regulation of the Act.
Copy of relevant Notification, Circular or Press Release.
An example in case of intricate provisions is created
recognizing these confusions and doubts - an attempt
to give a correct perspective of ;
[ I ] Foreign Exchange Regulations as regards
bank accounts in India i.e. NRE, FCNR(B), RFC &
NRO A/c. etc.
continuation of State Bank of India's Resurgent India
Bonds (RIBs) and India Millennium Deposits (IMDs),
Overseas bank accounts, movable assets & immovable
other assets in India,
[ II ] Tax Provisions pertaining to Returning
NRIs as regards :
bank accounts in India,i.e. NRE, FCNR(B), RFC
& NRO A/c. etc.
interest income of State Bank of India's RIBs and IMDs.
[III] Wealth Tax as regards :
01 Indian assets, 02 exemptions under Wealth Tax. femaonline.com
- is one of its only kind of website displaying most
updated Foreign Exchange Management Regulations - updated
almost everyday. The website also has special corners
for Non Resident Indians (NRIs), Returning NRIs and
Although, the content of the website can be viewed by
registered users only, we welcome you to a preview of
detailed contents of " Returning NRI's Bank Accounts
in India - [FCNR(B)] "
Returning NRI's Foreign Currency Non Resident (B) -
An NRI upon his return to India for settlement, i.e.
taking up employment, carrying on business or profession
or any purpose indicating intention to stay in India
for uncertain period holding an FCNR(B) account .
can continue such deposit uptill maturity; . at contracted
rate of interest & other terms if he so decides.
02 Upon maturity, returning NRI is
required to : i)
convert the FCNR(B) deposit to Resident Foreign Currency
Account (RFC), or ii)
convert the FCNR(B) deposit as Resident account.
"FCNR(B) Account" means a
Foreign Currency Non-resident (Bank) account referred
to in clause (ii) of sub-regulation (1) of Regulation
[Para 2(v) of F.E.M. (Deposit) Regulations, 2000 ]2
" Non Resident Indian ” for the
said chapter means a person of Indian origin being an
Indian citizen or a foreign citizen who is residing
[Para 2(vi) of F.E.M. (Deposit) Regulations, 2000 ]3
Recently RBI has clarified that students studying
abroad also be treated as NRIs under FEMA and accordingly
be eligible for foreign investments and NRE/FCNR a/cs
"Overseas Corporate Body " means
a Company, Partnership Firm, Society etc. wherein 60
% or more ownership lies with NRIs or a Trust wherein
60 % or more financial interest is irrevocably held
[Para 2(xi) of F.E.M. (Deposit) Regulations, 2000 ]4
"Person of Indian Origin" means an
Indian citizen or a foreign citizen who;
i) at any time held an Indian Passport, or ii) himself
or his parents or grand parents were citizens of India,
or iii) is a spouse of an Indian citizen, or iv) is
a spouse of person referred to in (i) or (ii) above.
[Para 2(xii) of F.E.M. (Deposit) Regulations, 2000 ]5