Returning NRIs

Returning NRIs

Emotional ties are primarily the main reason behind the return of an NRI to India. If the bond to the native land is still strong, whatever may be the hurdles; he will overcome them and return.

Facilities to returning Indians:

Maintenance of assets abroad:

Non Resident Indians including Persons of Indian Origin have been exempted from declaring their assets abroad and/or obtaining permission from the Reserve Bank of India to hold the same at the time of their return to India provided such persons have a minimum continuous stay of one year abroad and have acquired such assets legitimately.

The above said general exemption is applicable to all incomes i.e. interest, dividend earned on foreign exchange assets, bank deposits, investment in foreign shares or securities or immovable properties located outside India or investment in business outside India. The exemption is also applicable for acquiring foreign currency constantly through such assets. Fresh credit to such assets should be out of foreign currency obtained for which exemption is also available. There is no ceiling for the utilization of such balances held abroad for any bona fide payments, including making further investment in shares, securities or immovable properties abroad provided the cost of such investment and or subsequent payment required is met exclusively out of such balances eligible for such exemption.

Maintenance of Bank Accounts:

NRIs residing outside India for not less than one year, on becoming residents are free to open and maintain Resident Foreign Currency (RFC) Accounts with authorized dealers. RFC accounts may be in the form of savings (without cheque facility), current or term deposits. The funds may be allowed to be freely utilized by the account holder, for any bona-fide remittances outside India through usual banking channels and for withdrawals in Indian rupees. On becoming Non Resident, the funds can be transferred abroad or credited to fresh NRE (Non Resident External) /FCNR(Foreign Currency Non Resident) accounts. If the foreign stay is less than one year, an application to form RFC has to be made to the authorized dealer and referred to the Reserve Bank of India for specific approvals.