Can an NRI-turned-resident freely repatriate foreign currency non-resident account FD?
Live MintWhen an NRI becomes a resident, can the foreign currency non-resident account FD be freely repatriated without coming under the ambit of the liberalised remittance scheme? Only an NRI or a non-resident of Indian origin is permitted to open a foreign currency account or the FCNR account as the name suggests, is a foreign currency deposit account in India. Regulations permit a returning NRI to keep the foreign currency held in the FCNR account in India by crediting the funds to a resident foreign currency account. Furthermore, while interest earned in an FCNR account by a non-resident is exempt from tax under section 10, such exemption can also be claimed on interest from RFC accounts by the returning NRI only so long as his residential status under the Income Tax Act is that of a non-resident or not ordinarily resident.
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