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Yogi Zone

Useful articles for your finance management by our team of experts

nri taxation

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Thank you for writing in to us. Below is the answer to your query

  

Question:

One of my relatives is an NRI in US. He has not opened any NR accounts in India. He transfers funds to his existing resident account, and invests in banks.At present his income in India does not exceed the taxable limit .
Is it compulsory that he should have an NR account?
If his income exceeds the taxable limit, can he make investments to avail the benefits of sec 80c?
When his income gets taxable, can he file return here
as any other resident?
Could you please clarify these doubts?

   

Answer:

Hello Sobhana, it is mandatory for every individual to inform the banks or companies where he got investment about the change of its residential status within a reasonable time. It is illegal for a NRi to hold a normal bank account in india.

  • So, it is compulsory that he should get his existing bank accounts converted  in to NRO account

  • Like other residents, he will also be allowed to make investments to avail the benefits of sec 80C

  • Yes, he can file his return in india like any other resident

Cheers,
The Yogi

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