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Status of NRE FD after return to India – Good & Bad News

One of the most common questions that I get from NRI is – what will happen to my NRE FD after return to India?

This question is on top of his mind because most NRIs locked their savings in long-term NRE FDs & they are giving high interest which is tax-free in India.

You can also get RNOR Guide from this post – important in the case of NRE FDs.

NRE FD after return to India


As an NRI, you can invest your money in fixed deposits in NRO, NRE and/or FCNR accounts. The interest rate on these accounts may be different from the interest rate on resident FDs. Here is a comparison of interest rates on Non-resident FDs of some banks –

Type of FD in Bank

(Sum less than  Rs. 5 crores)

Interest Rate on  NRE or NRO FDs Interest Rate on  FCNR FDs (US Dollars)
1 year FD in ICICI Bank 6.75% per annum 3.66% per annum
1 year FD in HDFC Bank 7.25% per annum 3.37% per annum
1 year FD in SBI 6.70% per annum 3.41% per annum

List – Best Mutual Funds in India for NRI  

It is good to park money in NRE or FCNR fixed deposits –

  • Interest earned on NRE FD is tax-free in India. (can be taxed in the country of residency)
  • Movement of funds is easy.
  • FCNR accounts are protected from exchange risk.
  • Many banks provide loans against FCNR deposits.
  • They can be continued in the same state till maturity whether you return to India or not during the FD tenure.
  • An NRE FD can’t be open in joint name with an Indian resident, even if that person is a direct family member.
  • There is repatriation option on investment through NRE Account.

NRO FDs are not lucrative as –

  • Interest is taxable.
  • There is no repatriation option on the principal investment or it’s tough.
  • Funds that have been originated in India or funds from an NRE account can only be used to open an NRO FD. NRE and FCNR FDs can be opened with funds received abroad as well.

As an NRI, you can make use of NRO FDs for investing money that you have earned in India and/or if you want to open a joint account with an Indian citizen.

Go for an NRE FD is you want to mainly park funds from foreign countries and want the money to be fully repatriable.

NRE FD can continue after return to India

Read – Best Investment for NRI in India

NRE FD after return to India

Let us look at the status of these fixed deposit accounts and the taxation rules related to them when an NRI returns to home base i.e. India and becomes a resident of India –

  • These deposits can remain as-is until maturity when an NRI returns to India and become a resident Indian. They need not be converted to resident accounts.
  • Withdrawals from both these accounts can be done only in Indian Rupees.
  • If we break NRE FD before maturity then interest is calculated only for the duration deposit remained with the bank.
  • Prematurely breaking of NRE FD attracts penalty which varies from bank to bank.
  • NRE and FCNR fixed deposit accounts can be converted to Resident Foreign Currency (RFC) accounts after maturity. The currencies allowed for RFC accounts are freely convertible currencies such as US dollar, Euro, British Pound and Japanese Yen.
  • NRO fixed deposit accounts have to be converted to Resident accounts.
  • The interest rate will be payable at the original rate if the deposit is held for the full term even after conversion into a resident foreign currency account.
  • Interest income from NRE A/c or FD that have been converted to RFC accounts will be exempt from tax if the status of the returning NRI is ‘Resident but not ordinarily resident’ also known as RNOR. A person is considered as an RNOR if the following conditions are satisfied –
  1. The person has stayed abroad for 9 years in the previous 10 years

  2. During the 7 financial years preceding the year the person returned to India, he/she has stayed in India for a period of 729 days or less.

    • A person usually has the RNOR status for around 2-3 years. If the status is ‘Resident’, the interest is taxable.  Interest income from NRO account is taxable in India whatever the residency status be. If the interest is taxable, then it has to be considered in the income source – ‘Income from other sources’ while filing tax returns.
    • After returning to India you become resident Indian and your global income becomes taxable in India. Of course, Double Taxation Avoidance Agreement ( DTAA) may be availed if the oversees is also getting taxed locally, so to plan your stay in India try to maintain RNOR status for the maximum possible time.
  • In such scenario except for some income, rest of your foreign income will remain exempt from tax.
  • The NRI has the responsibility to inform the bank on a change of residency status so that the bank can take the necessary steps on the accounts held by the NRI. On becoming resident the onus is on you to notify the bank of the change in the status.
  • The amount in the RFC account can be used for remittances abroad and investments abroad.
  • If you decided to go abroad again for a long term you can either remit the RFC balance abroad or transfer fund from your RFC into an NRE or FCNR account.

Immediately on return to India, NRIs should inform their bank to designate their accounts as domestic Resident accounts or transfer the balance in their NRE/FCNR accounts to Resident Foreign Currency (RFC) accounts, if so desired; FCNR accounts can be continued till the date of maturity and upon maturity, can be converted to RFC accounts.


Read – NRI Income Tax Rates in India

Few more points:

  • NRI after becoming resident in India can also create a separate tax profile like HUF and take separate tax exemption limit to HUF.
  • There is also NRO– Five years tax saver Fixed Deposit that will be eligible deduction under Section 80C of Income Tax Act, 1961. This also provides NRIs an opportunity to diversify their investments in addition to other investments permitted in Section 80C. The maximum amount to be invested in this should not be higher than INR 150000  in a financial year. No Overdraft or pledge allowed in the NRO – Five years tax saver Fixed Deposit.
  • In Five years NRO TaxSaver Fixed Deposit there is monthly and quarterly payout option is available but there is no partial and premature withdrawal is allowed.

Check – NRE Vs NRO Account

As an NRI, let us know your experience if you ever asked your banker – NRE FD can continue after return to India? Please share their response in the comment section. If you have any additional or updated information – must share that will really help every NRI.

NRE FD after return to India

About the Author

Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning".

  • Venkitaraman Subramanian says:

    My bank has said NRE FD account can continue till its maturity after that will become an normal resident deposit.

    • Hi Venkitaraman,
      Thanks for sharing. Few banks tell their customers to take a premature withdrawal they have some technical issues..

      • S Riaz says:

        I have come back to India after 9 years and this year I qualify for a resident but not ordinarily resident. Next year, I’ll again go abroad and be a NRI. Do I need to convert my NRE fds (which are maturing this year)into resident foreign currency accounts or should I reinvest as NRE FD?

        • Ranadeb Sarkar says:

          Dear Mr Riaz,

          As RNOR, you can continue to enjoy tax free status of your existing deposit held in foreign currency ( like in FCNR).

          In case you are holding the funds in INR ( like in NRE FD), your interest earning will become taxable as per individual slabs, in-spite of you being RNOR.

          Hope this clarifies.


  • YOgesh Kanna says:

    Really very useful tips. I had these queries as I am planning to return to India and even our RM from banks could not provide satisfactory replies to my queries and all my queries infact answered in above post.

    Especially RFC account and RNOR status are first time information to me.

    So, I can continue to avail tax free income even after returning to India by converting NRE FD to RFC account after maturity!

    Suppose if my NRE FD matures after 3 years of my return, can I still transfer that money to RFC and avail the benefit!

    • Dear Yogesh,

      Thanks for appreciating 🙂

      Regarding your query – interest income on NRE FD will be taxfree in India till the date your status is NRI or in RNOR you can convert that to RFC.

      • Ashutosh says:

        Hi Hemant,
        thanks for addressing this important topic.Is NRE FD even possible once someone becomes RNOR? Or one has to convert it into RFC?

        • Hi Ashutosh,
          RNOR is a tax residency status.
          You can have a NRE FD or FCNR FD only if you are a person resident outside India under FEMA.
          A person who has returned to India for employent becomes a person resident in India under FEMA immediately on return.
          After that he can only open a RFC account that is designated in foreign currency.
          Interest on RFC is tax free..

  • Seetharama says:

    Much useful info, one comment on tax bit:

    Instead of 5-year Tax saving deposit, one may choose ELSS (tax-saving mutual fund) which is locked up for only 3 years, and offers greater chances of appreciation, and increased tax efficiency. With ELSS only 10% long-term capital gain tax is to be paid; in case of bank FDs, the interest is to be shown every year in your tax papers, and tax is to be paid according to your slab. With NRO account, bank will deduct higher TDS. Even if you owe no tax, to recover your money (interest amount) more paper work (15H, or filing tax forms to get refund) needs to carried out, which is an avoidable head-ache.

  • Shashank says:

    I got this message from my Bank:

    Taxability in India is dependent on whether an individual qualifies as an Ordinary Indian Resident (ROR), Not Ordinarily Resident (NOR) or Non-Resident (NRI). An ROR is liable to tax on his global income, while a NOR and NRI is liable to tax on the income ‘earned’ in India. NRI benefits are available to a person till the time he holds the NRI status in India; a person loses his NRI status in the same year when he returns to India or within 2-3 years from the date of arrival to India, depending on the number of days of stay in India (explained below).
    Foreign exchange and overseas assets (such as bank accounts, stocks/securities, life insurance policies, loans, company deposits, debentures, bonds etc.) acquired/held/owned by NRI while he was abroad can be continued to be so held and owned even after the NRI returns to India for permanent settlement. Such foreign exchange and overseas assets can accumulate or accrue income outside India and the balances can be utilized for reinvestment or repatriated to India at any time (without attracting Wealth tax in India) within 1 year immediately preceding the date of his return or later.
    This exemption period is limited to 7 successive years which immediately follow the year in which the NRI permanently returns to India.
    Immovable property
    NRIs can continue to hold immovable properties outside India. Such properties can be rented out and rentals can be credited to overseas bank accounts. The properties can be sold and the sale proceeds credited to overseas bank accounts. Expenses relating to such properties, such as maintenance, insurance premium etc. can be paid out of the overseas balances.

  • Pramod says:

    Best bank for nri’s with good customer service and fd rates

  • Ravindra says:

    i want to know after becoming resident indian from NRI status, do I need to break FDs of NRE account?

    • Hi Ravindra,
      You don’t have to break – you can continue.

      • Shekhar says:

        How is that possible i.e. to continue with NRE FD ? You had said before that NRE accounts are to be converted into Resident Accounts. Bank will have to close NRE FDs in such cases in their System (GL) and open new Resident FDs with same interest rate and maturity ?

        • Nikhil says:

          Hi Shekhar,
          Yes, you can hold NRE FD till maturity.
          After that, you have the option to convert in a resident account.

          • Kothari Rajesh Jagdishchandra says:

            So If the maturity of NRE FD is say – 3 years – from the day I become resident Indian. Then the NRE FD will continue for another 3 years. What about the tax on interest for this 3 years- would we it be taxable?

  • Benoj Devassy says:

    After matured the NRE FD, and become a resident, need to pay tax for the interest from the deposit.

    • Anuj says:

      Hi Benoy,

      Interest Income is tax free till your residential status is NRI or in RNOR convert that to RFC.On becoming resident, interest is taxable

  • Mg john says:

    NRI return to India FD account status how

  • Abraham mathew says:

    Still confused about the future of nre fd held by an nri returnee with local banks
    Need a straight answer by someone whether the interest earned is taxable if the holder have rnor status
    Why rfc or fcnr account is different from nre fd
    ? Fcnr foreign currency denominated and nre fd although it is in rupees it is repatriable means it’s backed by a foreign currency
    Banks in india deduct tax once you inform them that you are back for the nre fds.
    Therefore if anybody in this forum knows about the sections in tax law supporting the the argument
    Not to pay tax for nre fds till
    The expiry of rnor status please share will be of good use to many of the returned indians.

    Thank you

    • Palak says:

      Hi Abraham,
      Interest earned in FCNR is exempt if the holder has RNOR status. (NRE FD it’s taxable.)

      The basic difference in FCNR & NRE FD –

      1. You can open NRE account as Saving account or Fixed deposit, but FCNR is always a fixed deposit account.

      2. Your money remains in Indian currency in NRE account but it remains as foreign currency in FCNR account.

      3.NRE account is always in INR but FCNR account can be in JPY, USD, CAD, AUD, SGD, JPY or CHF.

      4. The interest rate on FCNR account is lower than NRE account generally, depending upon which foreign currency you open the account.

      5. You can withdraw money from NRE account anytime, but you cannot break FCNR fixed deposit before completion or maturity.

    • Jatin says:

      Agreed mr.abraham same query but no proper reply from anyone

  • Niket S says:

    Looking at current scenario is it better to keep money in fcnr or nre fd as rupee might slight further

  • PS says:

    I have done FD in my NRE account. What will happen if I return to India. till when I can continue NRE FD? Is interest on NRE FD will be tax free after return

    • Anuj says:

      Hi PS,

      After returning to india you can hold NRE FD till maturity but that means it’s status will be same, it will be considered NRE FD.
      Taxability depends upon your residential status.If you become resident then interest would be taxable

  • Manoj says:

    Went to ICICI today. Had 3 NRE FDs with them all opened in the last 6 months. They said I have to close them and open new FD. Since none of them completed 1 year, lost all the interest till today. 🙁

  • Bija says:

    After long 27 years working abroad I have returned back to India on 9 Feb, 2019. I have saving in NRE a d FCNR deposits. Being NRI the interest was tax free in India. I want to maintain the FCNR as it is for my children higher edication at USA. What is the most efficient way to restucture my investments.

    • jaya says:

      Hi Bija,
      Consult with your financial planner.

    • Dr. Santosh says:

      If your status is now Resident Indian, then I suggest you convert your FCNR FDs AT MATURITY into RFC FDs. You will get same interest rate as for FCNR and all the funds remain Tax free AND repatriable for your kids’ education abroad. You can also keep some amount out of the FCNR Maturity as RFC savings account just in case you need to convert some funds into INR for expenses in India. But such RFC Savings account interest is almost nothing & tax free too.

      I also suggest you invest some amount from NRE FD into Mutual Funds. Now after the Indian Govt has implemented DDT (Dividend Distribution Tax) on MFs, the dividend amount you get credited into your Resident Savings account is Tax Free which you can use for your monthly expenses. You will surely get minimum 8% p.a. amount as dividends. Longer you keep the MFs the higher dividends you will get. Discuss with your Financial Advisor for advice on current best Mutual Funds.

  • Rem says:

    Is nri time deposit is taxable in India

  • Subramanian says:

    Dear Sir,
    I have seen the following comment:”Will the FD in NRE be considered as domestic FD in a bank if I relinquish my NRI status?”
    Is it that the each bank will have its own rule or is there any guidelines or circular by RBI regarding NRE FD of returned NRI?

    • Payal says:

      Hi Subramanian

      Once you become resident you have to inform the banks in India and they will change the status of the account as domestic.

  • Mahender Goriganti says:

    real question is; can my NRE (INR) FDs accounts be 1. redesignated as RFC accounts (am still RNOR) so these funda are avilable for convertion later if need be for overseas use; 2. & or can the NRE a/c INR be exchanged to FCNR (say $) and or 3. continue as FD but redeposited as RFC (INR) as is, so as to enable me to utilize, if need be later, for overseas use??

    • Dr. Santosh says:

      RFC is Resident Foreign Curreny.
      So answers to your questions are as follows –
      NRE FDs which are in INR will stay as NRE FD till maturity. You will have to convert INR amount at maturity into say US$ (at prevailing Bank rate) IF you wish to keep the funds as RFC FD (same interest rates as FCNRs) or RFC Savings account (almost negligible interest rate).

  • Ramesh Ashar says:

    I was NRI for past 30 years. I returned to India on 25 Dec, 2019. For A/Y 2018/19, I stayed outside India for more than 180 days. I got my dues from my foreign employer in Nov/Dec 2018 which I have invested in NRE FDs & FCNR which mature in Oct/Nov, 2019. I have small balance in NRE account. I wish to inform my Bank about my change of status. Please guide me.

    • Aman says:

      Hi Ramesh,

      You have to inform the bank about your changing status with a reasonable time period. (exact time period is not defined)

  • Rau says:

    In matters of tax one must ask a tax adviser to quote the relevant official publication. Indian IT Act Sec 10(15)(iv)(fa) is quoted below:

    It states that exemption for NR person or NOR person is allowed (of interest paid) on foreign currency deposits. If this is the same section under which a bank exempts NRE interest while the account holder enjoys NR status then it is reasonable to assume the phrase “foreign currency” deposits also includes “foreign exchange” deposits. Under FEMA, NRE deposits are referred to as “convertible foreign exchange”.

    (fa) by a scheduled bank to a Non-Resident or to a person who is Not Ordinarily Resident within the meaning of sub-section (6) of section 6 on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the Reserve Bank of India.

    Explanation.—For the purposes of this item, the expression “scheduled bank” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank;

    • Hi Rau,
      Thanks for sharing.

      • Rau says:

        Hi Hemant,

        Sec 10(15)(iv)(fa) seems to deal only with foreign currency deposits of NR and NOR individuals. A strict interpretation of this would be FCNR deposits which are denominated in foreign currency.

        It is Sec 10(4)(ii) that deals with exemption of NRE interest of persons resident outside India

        Sec 10 (4) (ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Management Act, 1999 (42 of 1999), and the rules made thereunder :
        Provided that such individual is a person resident outside India (i.e. a Non-Resident under IT Act)

        The FEMA definition of a person resident in India generally covers a person residing in India for more than 182 days during the preceding Financial Year. (understand that reference is made to the preceding FY which is the year preceding the “Previous Year” (Sec. 3) i.e. the year in which income is earned.).

        Under FEMA the definition of resident excludes a person coming to or returning to India otherwise than
        – for employment or business or profession
        – for other purpose in circumstances that suggest he intends to stay for an uncertain period (indefinite period ?)

        The above double negative implies a person coming for employment,business,profession is a resident from the very day they arrive.

        Similarly a person coming for any other purpose (e.g non OCI tourist or retired Indian) in circumstances that suggest an intent to stay in India for an uncertain (indefinite) period would also be FEMA resident assuming they have crossed the 182 day threshold.


        An IT NOR individual may not claim exemption of NRE interest under Sec 10(4)(ii) beyond one Financial year following the preceding Financial Year in which he was a FEMA NR.

        An IT NOR individual may claim exemption of FCNR interest under Sec. 10(15)(iv)(fa) for the years in which he enjoys IT NOR status

        • Diksha says:

          Hi Rau,
          Thanks for sharing.

        • Sundar says:

          I am an Indian citizen. I was working outside India for 27 years and after retirement, returned to India in Jan 2018. For FY 2018-19, I filed my returns as NRI, having stayed in India for less than 182 days.

          From 01 Apr 2019, my status is RNOR. A few of my NRE FD’s are still continuing. Based on item 1 as stated under conclusion, can I (as RNOR) get exemption from income tax for the NRE A/C and NRE FDs for FY 2019-20 (one more year)? Thank you.

  • Shri says:

    does my nri Fd remain non taxable after I return to India after 12yesrs

  • Ajay says:

    Hello Hemant,
    I would like to know whether the rules are similar for OCI card holder and NRI

  • Rohan says:

    Hi Hemant,

    Could you pls clarify on one doubt as I am not sure.

    I have a NRE FD which i just made a few months back. As per the bank, no interest is paid if NRE FD is broken before a year (there’s no pro-ration based on the actual duration the FD is held).

    Now I will be returning to India in a few months. My NRE FD will not complete the tenure of 1 year. As per your article and my research, I cannot hold a NRE FD the moment i return to India permanently

    1.) After my return to India, Can I still hold the NRE FD till maturity but pay tax on the earned interest. I think I will be in RNOR status for a year. But even if I am in ROR or Resident status, I dont mind and will file taxes. But is this legal (i.e. holding NRE FD but paying taxes as per the tax filing status

    2.) OR do I need to immediately convert my NRE FD to resident FD on return. If this is the case, I would immediately convert break my NRE FD and lose a few months of interest instead of breaking it after I go to India and losing an entire year of interest

    Pls advice

    • Ronak says:

      Hi Rohan,

      Yes, No interest payable if deposit prematurely closed within 1 year

      It is your responsibility to inform the bank of your change in residential status. It is possible that some bank may inform you that you can continue NRE FD until maturity whereas others may require to close the NRE FDs.

      If you continue the NRE FD, the interest on NRE FD would become taxable from the day of your return as you are legally not allowed to maintain NRE accounts under FEMA after return to India.

  • Pradeep says:

    Within what time frame should a returning NRI intimate his bank about his changed status from NRI to Resident?

  • Niraj says:

    After NRI returns to India and has RNOR status is the interest earned on NRI Rupee deposit taxable?

  • Kedar says:

    what happens to NRE deposits after the status is changed to resident deposit?

  • Surya says:

    In one part of this article you say the onus is on the NRI to inform the bank to convert his account to resident account upon his return to india.
    Elsewhere it is written that an NRI can retain NRE accounts till maturity (does that mean beyond the period he is RNRO?)

    • Roy says:

      Hi Surya,

      You are allowed to keep these Fds till maturity but it would be treated as Resident FDs by the time you decide to reside in India, hence tax implication would be the same as resident Fds

  • Bhat says:

    I stayed 8yrs in abroad and soon I will return to India can I be a RNOR

    • Tanisha says:

      You will be considered Resident but Not Ordinarily Resident in a year – if you satisfy one of the two conditions for a Resident –

      1. If you have been an NRI in 9 out of 10 financial years preceding the year.

      2. You have during the 7 financial years preceding the year been in India for a period of 729 days or less.

  • Simon says:

    what happens to a NRE FD when an NRI returns to India.

    • Palak says:

      Hi Simon,
      Interest income is tax-free until your residential status is NRI or RNOR.On becoming a resident , interest is taxable.

      • Jatin says:

        Hi palak….in one of the above comments in reply to one of the queries an tax epert by name TANYA replied that RNOR status holders have to pay tax…but u r not mentioning that it’s not taxable

        Thanks…pls reply

  • Victor says:

    Am still an NRI, I have a NRE FD, which will mature in July. My question, the full amount upon maturity along with the interest earned will be transferred to the NRE account?

  • sindhu says:

    Hi I was an NRI. Now we are in India for 1&12years.We had an NRE Fd. It got matured. My question is is the interest taxable.

  • Manoj says:

    I recently returned to India after living abroad for 15 years. I have a NRE account with NRE FDs (in INR). When I approached the bank about status change, they said that they will close the NRE account and open a new resident saving account.
    Since some of my NRE FDs are less than 1 year old, bank said that they will break the FDs without giving any interest and start new FDs with the same principal amount for the remaining duration in the new savings account.
    Can I continue my NRE account as I will be in RNOR status for 3 years? Is the bank correct on not giving interest on FDs. Looks like I am getting penalized for moving back to India.

    • Armaan says:

      Hi Manoj,
      No interest payable if deposit prematurely closed within 1 year.
      Yes, you can continue the FD till maturity but as a regular resident FD, not NRE FD.

      • Jatin says:

        Hi Armaan…can u also pls specify since Manoj will fall under RNOR STATUS so will the interest income be taxable

        • Dr. Santosh says:

          Interest is taxable ONLY as a Resident Indian status. During NRI & RNOR status the interest on NRE FDs is NOT taxable.

          • Dear Dr Santosh,
            Thanks for helping other readers with your detailed replies.
            Can you share any source on this “During NRI & RNOR status the interest on NRE FDs is NOT taxable.” our understanding is it will be taxable even in the case or RNOR.

          • Tamal says:

            Dear Dr Santosh,
            Could you please provide a backup for your statement that interest on NRE FDs are non-taxable during RNOR status.

          • RAU says:

            Please scroll up and refer to my earlier comment where I have explained that NRE is exempt only for the 1 previous year after ones FEMA status has from NR to R.

            FCNR is exempt for 2 preceding NOR years before the year when ones IT status has changed from NOR to R

  • Raj says:

    I am a NRI but on 27th of April, I returned to India on my retirement after 35 years of service abroad. I have NRE saving accounts. When I have to inform to the banks and how and when the Tax will commence on my earnings as interest on the NRE FDs?

    • Sunil says:

      Hi Raj,
      You have to inform bank within a reasonable period of time ( the time is not defined but we assume up to 3 months)

    • Sanil says:

      Dear Raj,

      I am also in same situation , i returned 8 months ago after nearly 20 years and i have my money in NRE SB accounts. If you got the procedures can you please let me know also.

  • Yug says:

    Currently aI Iam in UK m going back to my home country permanently next month can I open fcnr now

  • Shiva says:

    I have stayed in India for more than 180 days in FY 18-19 and have income from nre deposits .I was an nri since 1992 till I returned in 2018.Do I have to pay tax on the interest on nre Fds If yes can I pay on annual accrual basis on deposits that mature after 5 or 10 years.Thanks Shiva Prasad.

    • Ashish says:

      Hi Shiva,
      Interest income is tax-free until your residential status is NRI – On becoming a resident , interest is taxable.

  • sheetal says:

    can i add name of NRI son in nre fds

  • Oommen says:

    I understand that an NRE is a person who has gone out of India (a) for or taking up employment outside India or (b)for a business or vocation outside India or (c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.
    My background is:-
    1. I have been living in the Gulf region for more than 15 years and visited India less than 50 days on annual leave every year, in the past.
    2. I am retiring and going back to India on 25.07.2019. ( Thus, in FY 2019-20, I will be an NRE for 115 days and RNOR for 250 days). I will be RNOR in FY2020-21 also but not thereafter. All my NRE deposits will be taxable from FY2021-22 onwards
    These are my questions:- (1) Can I extend my NRE status in 2019-20 by visiting a nearby country for 250 days by taking advantage of the NRE status provision “for any other purpose with an uncertain period of stay”
    2. Also, Can I take advantage of the same provision and retain my NRE status in the subsequent years by visiting Canada for 183 days, every year.( I have a visit visa for Canada valid for 5 years. 6 month’s duration for each entry)

    • Amaal says:

      Consult with a financial planner.

    • Dr. Santosh says:

      All you need to maintain NRI status is to be OUTSIDE INDIA for more than 183 days. You could be ANYWHERE.
      Only issue will be your Bank asking for Residence address. So give your relative or friend address in Canada since you won’t be having valid Residence Visa stamped on your passport while exiting your Gulf Country.

  • Ravi says:

    want to know more about NRE account

    • Param says:

      Hi Ravi

      The article covered almost all the points related to NRE FD, if you still have any specific one, you are free to ask here.

  • anup says:

    I have done FD in union bank in NRE account .Is that amount is taxable after maturity

    • Joya says:

      Hi Anup,
      Interest income is tax-free until your residential status is NRI.On becoming a resident , interest is taxable.

  • Sanjeeb says:

    I am an nri for 15 years, but now living in india since from 15 dec 18. Not sure what is my nri status now. I am planning to go back abroad again this year or next year. Till then how wll be my nri fds in the bank will be treated?

  • N Kumar says:

    Kindly let me know income tax implication on a 5 year NRE FD, if Residential status of the depositor changes from NRE to Resident Indian even before maturity of the FD

  • Baptist says:

    Do I have to pay income tax on interest earned on NRI deposits after returning to India?

    • Tarash says:

      Hi Baptist,
      Interest income is tax-free until your residential status is NRI.On becoming a resident , interest is taxable.

  • Arun says:

    Regarding my fixed depoist in nre account.. after returning from abroad this fixed deposit interest is taxable,?

  • Ratna Chaudhuri says:

    Asked our bank if our NRE and NRO fd s can continue without breaking till maturiry if we become residents? We already pay taxes on NRO fd s. And we are ready to start paying taxes on NRE fd s when we return to India. We just do not want to break our FD s for conversion. But bank said we have to break them, pay penalty for premature breaking and make fresh FDs at lower interest rate. Can you help?

  • Pushp says:

    I was NRI since jan1989. Return to India in ur 2013/14 then NRI sept2015till may 2016 again I HV assignment in sept2019. Should I report my bank asset in foreign ac

  • S.V.Nathan says:

    I returned from abroad as NRI, for good on Jan 15, 2017. Now, up to which date, my NRE FD interests can be considered as non-taxable? Thanks

  • bobby says:

    i returned to india in april 2018 and keeping my account in nre account, interest from these accounts are taxable in f y 18-19

  • kulkarni says:

    Will I need to pay tax on NRE FD interest when I return to lndia

  • Raj says:

    My question is how the taxable interest will be calculated. Because if It is FD then i will receive all Interest at the end of the tenure. Let say, at the time of Resident Status my FD gets matured after 10 years. Do I need to pay tax on whole 10 years interest or only interest accrued in that year?

    Thank you.

  • Vijay Kumar says:

    What if I stayed in USA for 8 months and going back to India? I need to open NRE/NRO account?

  • kamal says:

    I have an NRE account now i am a resident of india i wanted to know whether interest from such FD is taxable?

  • Jayesh says:

    I have left gulf country i have nre account so pls guide how will i continue that account

  • Deelip says:

    I am going to settle in India. My some of nre fixed deposits are going to mature n 2022 and some 2027. Is interest receive from such FDRs are taxable?

  • Rajnish says:

    What happens to NRE FDs that are maturing few years after planned return back permanently

  • Raman says:

    As I am NRI and after some time i will return to INDIA, then what will be with my NRE FD

  • MANOHAR says:

    i am relocating to india and i have NRE deposits.. do i have to pay tax for the interest earned for the NRE deposits

  • Ajith says:

    I will be returning to India in Oct 2019. I have few FDs (tax free) which have different maturity periods. If I convert them into Resident FDs i have to pay 30% tax on them, right ? In this scenario, please let me know which is the best option to save maximum tax on interests earned ? Any other stable investment ideas which can compensate the tax loss ??? Thanks in advance for your kind advice.

  • Amit says:

    It is not clear, one side you are saying Nri can keep NRE fds till matuarity in Nre account even if return to India and later you are saying NRI upon return must convert Nre fd to Resident fds….?
    Also pls advise my Nre fds will be taxable if I return to India and do not earn RNOR STATUS.

    • Hi Amit,
      Sorry if I confused you.. You can continue NRE FDs (so assuming you locked higher interest rates a few years back – you can get that till maturity) but their status should be converted to Resident. Hope this clarify your first question.
      Even if your status is RNOR interest will be taxed from the day you arrived in India.

      • Jatin says:

        Hemant sir… Can u pls clarify one more thing along with this…. My income will b taxable from day i arrived in India OR after completing 182 days in a financial year…. Pls clarify this … Thanks n regards

  • Sanil says:

    Dear Mr. Hemant,

    I have stayed in India continuously one year as of Sept 2019 after more than twenty years worked abroad. Now I have decided to continue to stay in India in future. I have NRE SB account in union bank of india, which has my life time entire saving. Kindly please advise me the necessary steps , so that I can protect my money in NRE SB account.
    Is there any chances of loosing any money.

    Kind regards,

  • Shubha says:

    The SBI interest certificate provides me interest paid and accrued ca say as I in between my status changed my nrefds should be converted to normal fd. As I know I can continue till maturity. And ca say my interest income is taxable including both paid and accrued . But as they are nre fds y interest certificate shown paid includes accrued also .please clarify me

  • Naresh says:

    I have nre fds and FCNR fds what happens if I return to India for good

    • Jay says:

      Hi Naresh,

      Your NRE FD will be taxable from the day you arrived in India.

      And interest income earned from deposits maintained in an FCNR account is exempt from tax up to such period you are a non-resident or RNOR in India

  • nina says:

    how will i be taxed if i renew my fd along with my principal amount + compound interest?

  • Ramesh says:

    I have some NRE FDs which are tax exempted. Now returned to India…can I continue availing tax exemption till the maturity of FDs?

  • Mathew says:

    NRE FD Interest are tax exempted after having RNOR Status?

  • Gurvin says:

    I have some FD’s in my NRE account and i dont have any income in India. They deduct approx 31% tax from the interest earned. Can i get a refund if i file ITR at the year end. I am Canadian.

  • regina says:

    After return to India, are NRE FDs taxed after the two year period

  • Purushu says:

    I was an nri for 37 years and i have some FD which will nature in 2023. Also what will happen the money remaining in my nre account

    • Harsha says:

      Hi Purushu,
      Its depend on your residential status, if you returning in India, the interest will be taxed from day one otherwise it is exempt.

  • Animesh says:

    after being an NRI for 14 years, I returned back to India 2 months ago. I am now signing up for a new financial service and I would like to know what should I declare as my resident status since I have only been in India for 90 days. Also, Do I need to update mu KYC status?

  • Ajay says:

    I have my NRI account and I came in india permanently I want to know that till how many years my NRI account is active

  • Mohan says:

    An nri returning to India after 20 years, is his nre fd interest taxable as long as he is an rnor?

  • Shyam says:

    i am opening an NRO/ NRE account but the Fixed deposit doesnt mature until 2022

  • Wasiq says:

    How much amount can we put in saving account Tax-free

  • Anitha says:

    i have an nre account in which i have been remitting money while i was employed in the foreign country. but now I am not employed and now I am in my husbands visa but with residential status. so what has to be done to my nre account and fds

  • vikas says:

    I want to know: Is gift from a NRI to his brother’s HUF taxable?

  • Digvijay says:

    Hello Hemant.
    Thanks for the information you shared here.
    I am an OCI card holder and citizen of Australia.
    If I wish to come to India say for 5 years when do I become a Indian resident for tax purpose ?

  • Sivakumar says:

    what is the best way to transfer fixed deposit from india to NRE account. am yet to open nre account

  • Rajan Sundar says:

    NRE FD, on return to India : The advice given to me by several accountants / auditors is:
    1. The NRE account should be converted to Resident account within a “reasonable time” (no body is able to clarify how much is “reasonable” 1 month?, 2 months? 3 months?…)
    2. The NRE FD should be converted to “Resident” FD and can be done at the at the contracted interest rate and the maturity date.
    3. The interest on the said FD will be taxable when the tax status of the individual for the financial year in question changes from NRI to RNOR / Resident.

    This aspect of income tax on interests from NRE FD’s on individual’s return to India:
    1. Banks are not aware / you don’t get a clear response / it is not their look out.
    2. They let you continue the NRE FD as NRE FD till maturity, after which they expect you to notify them of your change in Tax Status.
    3. Several accountants / auditors are of the view that the said interest on the FD’s continues to be free of income tax (like for FCNR’s) till the maturity of the (NRE)FD.

  • Prashant Rochlani says:

    Hi Hemant,

    I had a doubt, as an example if I have several NRE FDs, prior to returning to India, if I break all of them and convert them to a single 10 year NRE FD and then return to India, I would be a RNOR for 2 – 3 years and after that a Resident. What will be the tax status of interest earned on these NRE FDs?

    If I understand right, existing NRE FD need not be broken/withdrawn/converted until maturity, so this could be a solution for retiring NRIs to save tax for atleast 10 years?


  • Rohit says:

    can I keep my FCNR account after my return to India

  • Manoj says:

    I am working in foreign ship. For last 15 years I have been maintaining my NRI status by working abroad for 185 days in each year. Is there any benefit if I not maintain my NRI status particularly this financial year 2019-2020 due to some domestic requirements.

  • guilbert says:

    i am nre holder have deposits it will get matured in 2023 now i am retired in this my deposits status will remain nre till maturity

  • Chandrakant says:

    I am NRI for last 14 years and planing to back home then what will be status of my NRE fds

    • Shekhar says:


      If your intentions to stay in India for good, then the status of NRE fds will be converted into residential fds, and continued till maturity.

  • Avirush says:

    What will happen to NRE and NRO FD if return to India.Can I continue to the Fd till maturity?

  • Anarendra says:

    After living 8 years and six month in abroad I just came back to India. Please guide me how I will approach to bank for my nre account and nre fixed deposit account

    • Aman says:

      Hi, Anarendra

      You must contact senior management of a particular bank, give details of yours fds you want to continue as NRE Fds till maturity

  • Niraj says:

    An NRI for 25 years returning to India having USD FCNrs/NRE Rs Deposits and NRE bank account.1 What should be done with NRE InRs FD’s? Can they be retained til maturity? Is interest taxable of tax-free for 2-3 years?

  • Abhishek says:

    What should be done to NRI account once after return to India after 9 years in UAE.

  • Aman says:

    Hi Abhishek
    You need to close it down if you planned to stay in India for good

  • Jatin says:

    Hi sir… My query is that I had opened an nri account wit 3 people in it as either or anyone of the survivor mode of operation
    The first holder being my dad(he has expired), second my mom n thirdly myself

    The bank people are saying tat since am already in India for more than 182 days in this financial year I have to transfer that nri AC to residential savings account…so tat my fds need not be withdrew prematurely… But the issue is tat since the primarily holder was my dad…they are telling tat I will have to close the account n fds also n transfer to our residents savings account
    Doing so I will have to go through lots of losses due to premature closures(2017-2021 are the due dates of all fds)

    Pls advice

  • Sunil seth says:

    I have a query regarding RNOR, I am an NRI for more thanpast 10 years and have been in India for about 100 days in past 7 years, If I return back to India on 30 Nov 2019, I will be an NRI for AY 2020-21. I will be in India for 365 days in FY 2020-21 and also FY 2021- 22. How is my Status be for these 2 AY years – RNOR or no. Please give reasons

  • Raju says:

    I am NRI since last 25 Years and now i m coming back to India where my status will be resident.What will be the status of interest earned on my FCNR account and NRE FD which i already have with me

    • Roy says:

      Hi. Raju,

      FCNR and NRE deposits need to be converted into RFC deposits and you can earn interest on them until maturity but that interest would be taxable.

  • Royce says:

    NRIs returning India after RNOR status of 2 to 3 years, what will be the status of the principal amount in RFC accounts or FDs? Is the principal FD amount is taxable?

  • Kishore says:

    What happens to NRE FD when a bank fail like PMC

  • Anonymous says:

    I have operated a resident savings bank account as NRI. Now I realise it was a mistake. What’s way forward? Do I inform the RBI or IT about it and how do I transfer money from the account to NRO account? Is this fema violation and do I have to go to RBI for compounding of contravention.

  • Bala says:

    Can an NRI after becoming resident gift to NRI relatives by depositing in their NRE account in India? . How about Fixed Deposits of NRI which opened before becoming resident ,is it still trated as non taxable and be given to NRI relatives by remitting to their NRE account maintained in India?

  • Sandy says:

    Can you answer in simple terms. If one bcomes RNOR (2-3 years), will interest on NRE FD in Indian Rs. is taxable and if so, then only he has to convert to RFC?

    • Roy says:

      Hi. Sandy,

      You can earn taxfree interest until you attain RNOR status.
      Once you attain RNOR status then you have to convert the NRE deposit in RFC and you can continue till its maturity with taxable returns.

  • SANTHOSH says:

    I have about 10 nre FD accounts in India and in case I return back to India from abroad( i was in UAE for 10 years), can I still enjoy tax-free status on these

  • Sandesh says:

    Once I return back and become RNOR (2 0 3years), will interest earned on NRE FD IN INDIAN RS. is taxable If yes, then only I can convert to RFC account

  • Prabhakar says:

    I am Prabhakar, still, I doubt on the nre fd, can those be in the same status, until maturity even after SB nre is concerted into ordinarily account, some fds are for 10 years. I am a senior citizen now

  • suresh says:

    how long i can keep nre fd in same nre satus after becoming resident

  • Deeba says:

    when nre account redesignated to the resident account the total balance held will be taxed?

  • Jackson says:

    I moved to India an year back from US. Now I want to transfer my funds to Indian bank in INR. I don’t have NRE account. In this case, can I just transfer it to my savings account in India

  • Parth says:

    If i retire outside india, will my interest on FD’s be taxable

  • Aayush says:

    I just returned to a India after spending more then 10 yrs as a nri. I am going to change my residency status to bank and what will happen to my NRE fd which is less then 1 yr old

  • Kishore says:

    Stayed outside India for years & Income earned outside India was brought & invested in MF & FD in HDFC Bank in India & status was NRI so No taxable. Now next year stay in India is > 180 days so residential status is Resident, so whether old invested amount of MF & FD interest will be taxable in next year

  • Thangayyam says:

    I was NRI for 10 out of 10 previous years and did not more than 729 days in the previous 7 years. But from last year 2018-19 I am RNOR status for 3 years. I am still keeping my savings abroad. I like to keep it there. How long can I keep there and do repatriation to india?I was NRI for 10 out of 10 previous years and did not more than 729 days in the previous 7 years. But from last year 2018-19 I am RNOR status for 3 years. I am still keeping my savings abroad. I like to keep it there. How long can I keep there and do repatriation to india?

  • Sunil says:

    after returning india is my account balance in nre account taxable

    • jay says:

      Hello Sunil, the amount in your nre account won’t be taxable if you hold an RNOR status and if you do not hold an RNOR status then the amount would be taxable.

  • Conrad says:

    If an NRI invested in a 10 year NRE FD with an Indian Bank in 2015 and expected to mature in 2025, and has permanently returned to India in 2018, can he legal. hold his NRI Saving Bank account till 2025 so that the maturity amount could be transferred into that account

  • shane says:

    Just lost my job abroad and back to india. Until when I can keep the NRI account status.

  • Pius kenedy Noronha says:

    I am working in UAE for the last 23 years and had been to india for short vacations wanted to know when i return back for good how long can i keep my NRI status and enjoy the tax free benefits

    • jayat says:

      after coming back to India you cannot continue your NRI status however you will be considered as an RNOR which also has some tax benefits

  • Azmaddin says:

    How long i can maintain my NRE account status after i return to india.I have NRE accts in SBI?

    • Rajat says:

      after coming back to India as per FEMA you will have to inform your bank about your residency status and your nre FD will be redesignated as resident account

  • Dev says:

    i came to india mid 2016 and opened an nre account to which i repatriated some money. I have since been mainly resident in india but am still an irish citizen and hold an oci card when do i have to start paying tax on my nre fds

  • Haja says:

    I want to know about what does it mean for NRE cash certificate -compound interest.

    • rajat says:

      since you will receive interest on the cash certificates Compound interest will help in increasing the amount of the deposit by the power of compounding

  • Pramod says:

    I m having NRE fixed deposit in dollar & pound and returned to India 10yrs back what would impact on FCNR FD.

  • Haja says:

    I have an nre account and am using fed mobile for my transaction. My question is, there is an option to deposit my money as FD. So if I select the category option for nre- cash certificate -compound interest. What does it mean?

  • S Riaz says:

    If in Resident foreign currency account, a NRE FD matures then can it be reinvested as NRE FD till the RNOR status is maintained?

  • Shishir Pandey says:

    I am posted in the Democratic Republic of Congo for a year on United Nations Mission, I have an NRE account in India, I will complete my tenure in September 2020…what happens to my FD after that…will it remain tax-free

  • Ramjanm says:


    • jay says:

      when you come back your status will be considered as an RNOR and since you have stayed abroad for 12 years you can continue your RNOR status for 2-3 years.

  • Teenug says:

    I was staying out of india since 02/2008 to 06/2018. Would i be a RNOR?

  • Teenug says:

    I was staying out of India from 02/2008 to 06/2018. Would I be an RNOR?

  • Jay says:

    If I held my foreign investments in FCNR for 2 years. What are my options at maturity?

  • Chandran says:

    Whether NRE FD interest is taxable after becoming RNOR

  • Ashok Agarwal says:

    Hi Hemant,
    I am returning to India in March 2020,after a long stay of 27 years abroad. I have read a lot about RNOR in your articles & some other articles also. I am still not clear about INR NRE FDRs, can I keep my FDRs as it is & avail tax exemption like NRI or I have to break these & convert them to USD or Pound Sterling to put them in RFC to avail tax exemption under RNOR. Please clarify.

    • shyam says:

      you can keep your FD as it is but the interest won’t be tax-free, to avail tax exemption you will have to convert them to RFC FD and you can keep them till your status remains as RNOR.

  • sundar says:

    I am returning NRI and want to intimate my bank about my change of status. I have FCNR maturing end Jan and Feb.Will these are converted to INR on maturity and liable for tax?

  • Dev says:

    I am an Irish citizen of Indian origin holding an OCI but have been resident in India for the last 3 years I opened an NRE and NRO accounts what happens to my FDs opened in my NRE account 3years ago

  • Ganesh says:

    My wife was also working in foreign and we had one bank account in foreign as joint account with my name being first one. Both her income and mine were deposited here into this one account.
    In the same periods we had NRE account in Indian banks also as a joint account. We made FDR also as a joint names.
    Now the FDR made in India is from income of both of us earned in foreign. When we eventually return back to India, how will interest income be treated.
    1. will be treated fully as my income, even though it has contribution from my wife also?
    2. can I convert few FDR into wife name after we return to India – will it be allowed and not viewed as gift or clubbing
    3. ideally I would like to be viewed me and my wife as separate entity and want to file 2 returns with few income from interest shared between us – is it possible

    • Hi Ganesh,
      It will be treated as a separate income. You should make sure that you keep information handy related to foreign income or bank transactions – if required by IT department in the future.
      Coming to your specific questions:
      1. No – it’s your wife’s income.
      2. Yes, you can convert few FDR into your wife’s name.
      3. Yes – you should file 2 separate ITRs.

  • Paul says:

    what is the taxability of NRE deposit both principle and interest NRE FD NRE RD NRE Saving? is there any exemption period or will it be immediately taxed.

  • Abhishek Roy Choudhury says:


    One of my friend is planning to go back to India. He is planning to go for long term NRE FDs while he is an existing NRI. Let’s say, he is planning to go back to India in 2021, and thus he is planning to invest funds as NRE FDs for 10 years (Longest Possible Tenure) in 2020. In this way, the interest earned from 2021 until 2030 will be tax free for him, even if he is staying in India from 2021. Logic he has that he will create these FDs while he is a NRI.

    Can I know if his plan is correct? When he is an Indian Resident (from 2021 onwards), the interests earned from the FDs (10 years) he created in 2020 will still be non taxable?

    Kindly looking forward towards your feedback. Thanks!

    – Abhishek.

  • Anil says:

    I was NRI till 31st March 2019 since Aug 2016 and from this year as on 31st March 2020, I will be Resident Indian but still working for an overseas company and getting earnings from there. I have NRE and NRO both accounts. How to proceed further now from this financial year.

    • Mohan yadav says:

      Hey Anil
      You must inform your bank about the changes in your residential status. Whatever account you have that must be re-designated as a resident rupee account.

  • Anita says:

    Was an NRI till 25th Jan….now retired and have returned to India…have FDs that mature early 2021….can I open a savings account or should I break all the FDs prematurely and then open a savings account.

    • Shalu says:

      you can break your FD but then you might have to pay penalty for it the interest will also go down by some percent.
      You can also open a savings account as well, you have both the options.

  • shery says:

    What will happen to my NRE account after returning to India?

    • Mohan yadav says:

      Hey shrey,
      You must re-designate your NRE bank account to an RFC account. Interest on NRE and FCNR accounts is Exempt in the hands of NRI. However once the individual becomes a ROR, interest on the RFC accounts taxable.

  • Manmeet says:

    I came back to India from abroad permanently. I made some NRE deposits for 5 years. Since I back do I have to break my fds or I can continue it till maturity. What will be tax implications?

  • Bhupesh Mehta says:

    Hello Experts
    I am NRI stayed for about 30 years outside (in UAE mainly) and will be retiring in April-May 2020 sometime forever to India.

    What i studied is for retiring we need monthly fixed income and for that following options are better or NRE FD keeping for 5 years is better ?

    1. SCSS – upto 15 lacs (senior citizen saving scheme)
    2. POMIS upto 9.5 Lacs (with spouse)
    3. Government Bond Saving – 10 years Interest is 7.75

    above all are taxable incomes.

    With FDs rates going down is it worth keeping NRE FD more or the above options ?

    Once i return my NRE FD which gives quarterly interest so this tax will be taxable ? if yes then why is it called NRE FD ? if not then if i keep money just before entering india for 10 years will these interests will be tax free ?

  • AShutosh says:

    Hi . I have NRI account and FD’s on same account and interests earned on Those Fds are More than 2.5 Lakhs , do I need to File IT return.

  • deb says:

    Do I have to pay income tax on my NRE fixed deposit till the time I am RNOR?

  • Prakash says:

    Upon return to India permanently how will my NRI FD which were invested when I was NRI be treated.

  • Ujjal says:

    What is the best investment scheme in India for NRI?

  • Bhupesh Mehta says:

    I plan to return India now in May 2020 and worked abroad for about 28 years. Now can i keep NRE FD now for 3 years and get the tax free interests? I will be retiring so do not plan to take up any employment again. (Bank was pushing that put the NRE FD before coming here so you get the tax free interest till its maturity !! so is this correct?

  • Anu says:

    I am staying in Dubai for the last 30 years, I have NRI FD and SB account, If I return back, I have to pay tax?

  • Rohit says:

    If an NRI is deceased, what does happen to his NRI Fd? And nre accounts in India?

  • Amarnath says:

    My NRI account is blocked for KYC.

    • Komal Jain says:

      Hey Amarnath,
      In this regard, you are required to undergo for the re-KYC and submit relevant documents for the same.

  • Bhupesh says:

    NRE FD is not taxable till maturity even after the person returns back to India?

    • Manish says:

      Hi Bhupesh,
      Even on returning to India, if his/her residential status is NRI for a particular financial year, the interest income on NRI-FD is taxfree.

  • Vikram says:

    Can an NRE FD started in “x” bank be transferred as an NRE FD in another “y” bank. Just to diversify the asset as don’t want to park all asset in one bank and the bank suddenly goes kaput like the PNB / YES bank

  • Kamal says:

    After I lose my NRI status, what should I do with my NRE INR account balance? Is the balance eligible for interest exemption under RNOR status even after redesign action as a resident account?

  • Abdul says:

    I am a gulf returnee, Senior Citizen. What will happen to my NRE account and FD?

    • Mahi says:

      Hey Abdul,
      You can continue your FD till maturity and your NRE saving account will be re-designated as a resident rupee account.

  • Ganesan says:

    Sir, your posts are very much useful. Thank you!
    if I have no intention to go back to abroad and no other foreign income is there, will it be helpful to convert NRE FD’s to RFC account?
    RNOR qualification: will it counted the days visited to india as vacation in between in calculations.
    Note: 30days before I came to India

    • Keet says:

      Hey Ganesan,
      As per my knowledge its good if you continue your NRE FD’s till maturity.
      No it will not countable in calculation.

  • Nitin says:

    I want to transfer my foreign earning to India.

  • Kartik says:

    Can I use my NRE account in India?

  • Nikhil says:

    Till what time period can I maintain nre deposit after I become a resident.

  • Dhirendra says:

    What happens to NRE FD (TDS) after the person returns to India?

  • Nibin says:

    Do I need to submit yearly my KYC documents for the renewal of NRI?

  • salvador PEREIRA says:

    i returned back to india on 20 feb.2020 for good. I have money in the bank maturing in september 2023. upon maturity how can I transefer this money into my indian account.

  • Purshotam Sacher says:

    I am a Canadian citizen and trying to settle back in India. I landed on March 10, 2020, and don’t intend to return unless required. I want to understand the process of navigating the NRI status and it’s redesignation which may not be beneficial at this point. All I have is nre account savings and no fd yet.

  • Yaspal says:

    I am NRI and I have FD what will happen if I come back for permanent.

  • Arvind says:

    I had NRE FD in a bank and changed my status from NRE to a resident in July 2019. Am I required to tax on the interest earned from NRE fd for 2019 – 20?

  • dhivakar says:

    when I back to India NRE account FD amount what can I do?

  • Usha says:

    Assuming for an NRI returning back to India, If the NRE deposit matures in less than a year from arrival in India, will the interest be taxable for a person who returns back in say June 2020? Let’s assume that the NRE deposits are maturing during October 2020 till March 2021. So for AY 2020-2021, will the assessee be liable to pay tax on the interest accrued on deposits maturing after June 2020?

  • Usha says:

    If an NRI returns back to India, he will become RNOR initially if the criteria of 7 PY is applied. However, after one year, he will not qualify for RNOR status. Is that correct?

  • Sathyanandan says:

    What is the interest rate of savings NRI a/c?

    • Ritik says:

      Hi Sathyanandan,
      As per my knowledge the minimum interest rate on NRE account is 3.50%.And it differs from bank to bank.

  • Sudha says:

    After returning back to India whatever maturity of NRE deposits is there..will be still tax-free?

  • Mani says:

    I intend to transfer money from my NRE account to my son’s account who also holds an NRE account in Nationalised Bank. Are there any restrictions on maximum amount. Are there any tax involved

  • Mani says:

    Both me and my son (adult) are NRIs and we have separate NRE accounts in Nationalised Banks in India. I want to transfer money from my account to my son’s account. Is there an upper limit for such transaction? Whether any taxes are involved in such transaction?

    • Rohan says:

      Hi Mani,
      There is no limit on the amount you transfer. But the interest earned from that will be taxable outside the India.

  • Manish says:

    I returned to India in Apr 2019 will my NRE FD continue and I do not want in foreign FD.

  • Nithin says:

    If I put some cash for FD in my NRE account, then after the maturity period that interest and cash will come to my same NRE account or to the NRO account on the same bank.

  • BASIL says:

    what happens to my NRE FD once I return to India? is this automatically converted to a resident account?

    • Monisha says:

      Hey Basil,
      No, it will not automatically converted you will have to inform your bank about your resident status once the FD Mature.

  • chandrasekar says:

    I am an NRI and have few NRI fixed deposits in India. Now I am planning to resign and settle in India permanently. For how many months these deposits will continue NRI status so that I do not need to pay any income tax on their interest.

  • Anto says:

    I become an Australian citizen 5 years ago, moved to India with OCI permanently, what will be my status, nre or nro What happened to my new FD?

    • RAU says:

      Please do not confuse citizenship status with tax residene status.

      Every tax resident in India, regardless of citizenship, is taxable on their global income as well as Indian income.

      As a resident OCI your Indian income will be taxed like any other resident.

  • Jerine says:

    When I come to India what happens to my NRI account. The amount in that account will be taxable?

  • Jatin says:

    What will be the status of the long-term NRE fixed deposit upon return to India?

    • RAU says:

      You can continue your deposit and there is no need for premature closure.

      To understand how the interest will be taxed scroll up to my previous commentary

  • Michael Barboza says:

    Dear Mr. Hemant
    I am nri with more than 25 years, now planning to come and settle in mumbai for good. Please advise if I should contact financial adviser or CA for my future planning on tax savings. If you could also give me their charges

    • Hi Michael,
      It depends on your requirement if taxation is the only issue CA is the right person. If you are looking for complete financial solution – you can consult a financial planner.

  • Mahendran says:

    If the deposit is for 10 years but returned within 3 years. What to do the deposits?

  • Michael says:

    How long can we wait to inform the bank of your NRI status as it could be I might go back to a foreign country?

  • Farook says:

    If my visa cancelled after staying in a foreign country for 14 years, what should I do my NRE account in India. How to convert as RNOR account and avail tax exempt of interest earned from NRE account?

  • Samuthiram says:

    If the NRI returns permanently to India, is nre FD amount taxable or not?

    • OM says:

      Hey Samuthiram,
      As you returned in India you are required to designate the NRE account as resident and the interest income earned on the same will be taxable in India.

  • Ramkumar says:

    I am kumar .nre.singapore. i have sbi nre account. Nextmonth cancel my nre after i get some amount. Ex..500k.just transfer to account. After in india can i change to nre fd ? If cannot .any tax for 500k amount?

  • Mel Pic says:

    Hello Hemant,
    I will return back to India after 15 years working in the gulf. Due to Covid I might return in October. As a NRI status I’ve fixed deposits in NRE account bank which gets matured next year or in 2022. Do i need to inform the bank immediately to change the status. Will my NRE account continue till 2022. Will I get Interest free on the deposits. Do i have to file for Income Tax next year. Or Do I have to change to any other status to save the taxes. Thanks in advance!

  • Bala says:

    Rules on NRI accounts for US Citizens living in India temporarily from 1-3 years.

    • rahul says:

      Hi Bala,
      I think you will get relevant information from the bank regarding this. As per my knowledge, a person who lives more than 180 days in India is not considered as an NRI.

  • Aruna Vanukuru says:

    The Interest rates mentioned for FCNR USD accounts are that accurate? it is mentioned ICIC pays 3.66/annum on FCNR USD accounts

  • Suresh Kumar says:

    I have been an NRI for the past 20 years. I came back last March, ie March 2020. I have various NRE FDs and FCNR deposits. Do I have to convert the status of these FDs to RFC accounts? Will I be exempt from tax on the interest earned in these accounts during the next 2 years?

  • Rajendra says:

    After returning back finally in home town. shall we maintain the NRE account live for how many years?

  • Atul says:

    I have an NRE SB account and can I open an NRO TDR?

  • Sudhir says:

    I have US Dollars FD and I have returned to India 4 years ago. I want to maintain the FD in US Dollars. How can I do it? Please advice.

  • Dipika says:

    Hii I want to ask that if Indian person working in Dubai for the last 8 years and have nri account .. and that money he wants to do as a fixed deposit what will be the terms and conditions. That fd amount and interest earned is taxable? After maturity? If a person returns back to India.

    • Yash says:

      Hey Dipika,
      Interest income will be tax-exempt in India if you qualify as a person resident outside India. You can continue them as it until maturity when you return in India.

  • T. R. Arora says:

    Have NRE FD Deposit. Now am resident, how to process?

  • Hema says:

    I returned in India from UAE last year in June and still havent converted NRE FD into either RFC a/c or normal resident FD, as per the thought process i feel its better to withdraw NRE FD and invest in safe options and then notify the Bank to convert NRE savings a/c to a normal resident a/c…what do you suggest

    • Sameer says:

      Ideally, You are supposed to Inform your bank about your change of status immediately. I would suggest you do the same to avoid any penalties.


    if nri having saving & fixed deposit a/c in the capacity of resident, only interest income is only below Rs.50,000/- filling ITR regularly as resident status. what to do in future filling for the A.Y.2020-21,Please reply.

  • mehul shah says:

    i want to know one lady age 70 had dual citizen india & USA now last two or two&half years she is in india she can do NRE tax free fix deposit in india .

  • Deepak says:

    If a nri who has stayed abroad for 25+ years, returns to india but has FCNR deposit maturing 2 years hence. Then is the interest on FCNR deposit taxable ?

    • Rohit says:

      Hey Deepak,
      I would suggest you continue till maturity and interest will be exempt.

    • Ranadeb Sarkar says:

      Dear Mr Deepak,

      He file as RNOR & can continue to enjoy tax free status of his FCNR for 3 financial year or maturity, whichever is earlier.

      Hope this clarifies.


  • Shekar Iyer says:

    My Bank manager says” NRE FCNR FD will continue, but NRE Rupee FD will get converted as resident FD when you convert your NR account to resident account”

  • Saeed says:

    Hi Saeed here staying in Saudi Arabia I have opened account in HDFC NRE/NRO both with out Adhaar & PAN card now I am getting mails to provide it.., need your valued advice can I will be able to withdraw my money with out this both cards.. Regards

  • Anthony says:

    What is the duration I can keep RFC fixed deposit account in India?

  • Ratna says:

    I have shifted from gulf country & have fixed deposits.

  • Prasanna says:

    Is there a repatriation option on investment through nre account?

  • Sally says:

    Once i return to india, after how long do i have to start paying tax?

    • Anuj says:

      Hi Sally,

      As per my knowledge, If you have any Indian income then you need to pay tax immediately after returning to India but for some foreign income, you may get relaxation till the time you hold RNOR status.

  • Lijo says:

    I am in oman i can able to do deposit fixed deposit in post office?

  • Sandeep says:

    Suppose a NRI goes back to India and he has some fixed deposits which are going to be matured after 10 years. If the total interest earned from those deposits are subject to tax ? If yes then from which year onwards the income becomes taxable ?

    • Amar says:

      Hi Sandeep,

      As per my knowledge, interest income will be exempt until the time you will be RNOR after that it will be taxed. RNOR status can be hold for 2-3 years.

  • Anil says:

    My aunty wants to transfer her shares in my Nro demat account, Is it possible?

  • Raghuvaran says:

    Nre fd can continue after return to india?

  • Sunil says:

    I want to know if i invest in FCNR account as fixed deposit for three years period with Indusind Bank will it be safe?

  • Varghese says:

    i am planning to resign and come back to india by december. my leave salary and retirement money may credit to my indian account by february only. is that amount is taxable?

  • Guru says:

    i have NRI deposit for 10 years and getting maturity by 2 years. But I am moving to india from GCC in September. Can I continue as NRE deposits?

    • Shyam says:

      Hi Guru,

      Yes you can continue fd til its maturity.

      • Guru Raghavendran says:

        Thanks. But the question is

        1. Will the FD continue as NRI deposit till the maturity even though I am not NRI

        2. Do I have to pay tax on Interest income earned for remaining per period.


  • Amit says:

    I am NRI and have fd of 3 years in my nri account. Should i create fd which pay quarterly interest in my savings account or cumulative? I want to know tax implications if i become resident indian before fd matuarity in both cases?

  • Sunil says:

    For RNOR status NRE FD interest are taxable?

  • Anish says:

    One person has been outside india for 15 years.for how many years his account will remain nre after he returns?

  • Subin VR says:

    Hi, Please let me know upon which Act/RBI/FEMA guideline you had come a conclusion that a NRE FD can continue till its maturity ? As per my understanding an NRI has to intimate his residential change to the banker, and the banker has to convert his NRE FDs to normal FDs. Please clarify with supporting regulation.

  • Mahesh Vijay Joshi says:

    Hello Mr. Beniwal, I have recently asked my bank to change my status from NRI to Resident up on my return to India. I have few NRE FD’s in the bank which were opened @9.25%. I was promised by the bank employees that all the FD’s will remain as it is including the rate of interest. Most of the FD’s have been converted to same rate however, four of my FD’s with original rate of interest of 9.25 have been converted to 8.5%. Please let me know how can I get it sorted out?

  • Hareesh says:

    Require Clarifications:
    After working abroad have retired and have no other plans to work further. But I have US B1 visa and plans to tour different parts of the world. My questions,
    1. Can I continue to maintain NRI status based on the prevailing definition of staying away for more than 182 days.
    2. Based on above my existing NRI bank accounts can be continued as NRI. If so, how can I submit my KYC documentation

    • Dear Hareesh,
      NRI definition of FEMA is different from Income Tax. We are not CA but my understanding is for your bank account & investment you will be NRI – for the tax you have to check your taxable income in India & 120 days may also apply.
      My suggestion is you should have a word with CA.

  • Hareesh says:

    I am in UAE. I am planning to return to India next year October. I will be returning in October 2021 so that I will be less than 182 days in FY2021-22. I have NRE RD which will mature in 2024 September. When will I become resident? Is it required to premature break my NRE FD when I become resident?

  • Salvador says:

    I an an indian citizen returned back from uae 1 year ago. I have deposits in US dollars. Upon maturity how can i bring the money into India?

  • Amit says:

    Is there a difference in taxation if i create 5 year NRI FD with quarterly payout or cumulative payout on maturity? Specially let’s say if I come back to India after 3 years. In case of quarterly the interest paid to me will be in past financial years but for cumulative I’ll be paid total amount at the end. So do i have to pay tax on whole 5 years interest in case of cumulative FD if my status is resident at that time?

  • Abdul says:


    I am NRI living in Sweden since July 2015. My question is:

    In case I return back to India (permanently) anytime between April 2021 to Sept 2021, then my stay in India will be more than 182days for FY 21-22. In this case, should I be paying taxes in India for the earnings I made in Sweden between 1st April 2021 to the date I landed in India?

  • Jasmine says:

    Can I continue my NRE A/c after return to India?

  • Jasmine says:

    Will someone’s income transferred to NRE A/C will taxable after returning to India?

  • Akashay says:

    how do I go about changing my NRI status to normal residence account?

    • Samay says:

      Hi Akashay,

      In my opinion, you need to inform the respective bank regarding your change of residential status after returning to India.

  • Nitin says:

    Last year i cam to india Sep’2019 but due to covid i unable to return, I am searching jobs now in ME. How my investment here will be treated.

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