NRI Tax Services

BANKING ACCOUNTS

Foreign Currency Non-Resident Account (FCNR A/c)
Designated Currency	US Dollar, Pound Sterling, Yen, Euro
Nature of Bank A/c	Fixed Deposit Account For 1 year to 3 Years
Operating the Account	-
Who is eligible to open the Account?	Non-Resident Indian
Joint Account	Opening of these with a resident is not permissible. However, joint account in the name of two or more non-resident individual may be open.
Who can operate the Account?	Non Resident Indian Account holder. Also the Power of Attorney holder only for local payments. The Power of Attorney holder cannot give gift, repatriate or transfer to another FCNR/NRE account.
Whether Nominations permitted?	YES In favour of any Non Resident Indian or Resident Indian. On death of Account holder, NRI nominee is allowed repatriation. However, resident nominee has to take RBI approval for remittance of funds outside India for meeting the liabilities of the deceased person or for similar purpose.
Transfer of Funds between one Non Resident Indian to another Non Resident Indian	YES
Source of Depositing Money	Inward Foreign Exchange remittance and also transfer from NRE / FCNR Account.Can also deposit Personally unlimited Foreign Currency notes or Travellers Cheques brought to India as Traveller. Refund of application/ earnest money together with interest if any on the deposits paid by Housing Board or Private Agencies may also be allowed to be credited provided the original payments was made out of NRE/FCNR account of holder or from Direct remittance from outside India through normal banking channels and authorised dealer is satisfied about the genuineness of the transaction.
Rate of Interest	The interest rates are revised frequently. At request, the current interest rates shall be made available.
Taxation of Interest Income	Tax free
Loans / Overdraft in RupeesAgainst security of funds to Account holder in India.	Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Repayment	From inward remittance or from local Account i.e. NRE/FCNR/ NRO / RFC account
Loans / Overdraft in ForexAgainst security of funds to Account holder in India.	Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Liquidity	Premature withdrawal is allowed in all the Accounts
Third Party Loans against Security of funds.	Loans/overdraft can be granted to resident third parties.
Loan outside India	Authorised dealers may allow their branches / correspondents outside India to grant any type of fund/non-fund based facilities to or in favour of Non-resident depositor, or to third parties
Tax Deducted at Source on Interest	NO
Repatriation Principal	ALLOWED
Repatriation of Interest	ALLOWED
Change of resident status of Account holder from Non-Resident to Resident.	On becoming resident in India, the deposit may be allowed to continue till maturing at the contracted rate of interest if so, desired by the Account holder. On maturity the deposit should be converted into resident rupee deposits or RFC account.
Miscellaneous	An account may be opened in the name of an eligible NRI during his temporary visit to India against tender of foreign currency travelers cheques or foreign currency notes and coins tendered, provided the authorised dealer is satisfied that the person has not ceased to be a non-resident. Interest on balance held in these accounts may be paid half-yearly or on an annual basis as desired by the depositor.

Resident Foreign Currency Account (RFC A/c)
Designated Currency	Any permitted currency other than the currency of India, Nepal or Bhutan.
Nature of Bank A/c	Special Schemes for NRI's returning to India. Fixed Deposit Account, Saving Bank Account, Current Account
Operating the Account	-
Who is eligible to open the Account?	Person Resident in India.(i.e. returning NRIs)
Joint Account	Joint accounts are permitted provided all Account holders are eligible for RFC accounts
Who can operate the Account?	Resident Indian Account holder. Also the Power of Attorney holder only for local payments. The Power of Attorney holder cannot give gift, repatriate or transfer to another FCNR/NRE / RFC account.
Whether Nominations permitted?	YES In favour of any Non Resident Indian or Resident Indian. On death, of Account holder, NRI nomiee is allowed repatriation. However, resident nominee has to take RBI approval for remittance of funds outside India for meeting the liabilities of the deceased person or for similar purpose.
Transfer of Funds between one Non Resident Indian to another Non Resident Indian	YES?
Source of Depositing Money	i) Transfer from NRE / FCNR/RFC accounts.ii) Funds realised on conversion of assets held outside India which were acquired, held or owned by the account holder when he was resident outside India or inherited from a person who was resident outside India.iii) Received or acquired as gift or inheritance from a person mentioned (i) above. iv) Pension and other benefits available from employer abroad.
Rate of Interest	The interest rates are revised frequently. At request, the current interest rates shall be made available.
Taxation of Interest Income	Tax free in the hands of person who is Non- resident (NR) or resident but not ordinary resident (RNOR) as per I.T.Act,1961.
Loans / Overdraft in RupeesAgainst security of funds to Account holder in India.	Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Repayment	From inward remittance or from local Account i.e. NRE/FCNR/ NRO/ RFC account.
Loans / Overdraft in ForexAgainst security of funds to Account holder in India.	Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Liquidity	Premature withdrawal is allowed in all the Accounts
Third Party Loans against Security of funds.	Loans/overdraft can be granted to resident third parties.
Loan outside India	Not permitted.
Tax Deducted at Source on Interest	NO till the account holder maintains the status of Non Resident (NR) or Resident but not ordinarily resident (RNOR) under the Income tax Act. There after TDS is required to be deducted @ 10% + Surcharge (as applicable)
Repatriation Principal	ALLOWED
Repatriation of Interest	ALLOWED
Change of resident status of Account holder from Non-Resident to Resident.	This account is specifically designed for Non-resident of Indian nationality or origin who have returned to India for settlement.
Miscellaneous	Funds in this account are free from all restriction regarding utilisation of foreign currency balance including any restriction in investment in any form outside India.