Hi, I was in USA for 5 years and returned to India in dec 2018. I am holding an NRE/NRO account. Last year I declared the same account in ITR and it was accepted. There was a chance that I may go back so I did not close the account. Now due to various reasons I did not go to USA. Now I need to file tax return. Will there be an problem? Also another thing I am planning to buy a house using the money In the account as down payment. Please advice
Since now you are resident even under FEMA as you fulfill certain conditions you need to convert your NRO and NRE account to normal saving and FCNR account.
Yes you can buy house using the money.
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Thank you.
Thanks Naman for the response. Since I did not do the conversation is any thing I need to take care while filling ITR Specifically related to this account? Or I can just declare the accounts held as I did in last year ITR.
You can just declare in ITR as you did last time
Hi
From ITR filing perspective, you need to report these accounts there would be no issue.
However, as per FEMA, you were required to convert these accounts to resident accounts when you returned back to India. This is a contravention of law and penalty could be levied. It is advisable to get the accounts updated now.
Hi, You can just declare the accounts while filing the ITR. the income from NRE account will become taxable as your status will become resident.
Hi
No there will be no problem but need take
Consideration provision related to FEMA.
YES you can buy house property.
- Due date to file ITR for F.Y. 2019-20 is 30.11.2020. It is better to first change the status of accounts to regular savings account. Write an application to bank for conversion. After confirmation only, update the details in the ITR.
Hi
You need to convert these accounts otherwise it will be contravention of FEMA
Hello,
You can declare this account while filing the income tax return. There would be no problem.
Yes, you can use the money in this account to buy a house property.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
It would be advisable to convert this account to resident accounts now as per FEMA.
Dear Sir,
Hope you are doing well !!
No, there would be no issue.
It is advisable to covert the your NRO and NRE account to normal saving and FCNR account before filing ITR.
We may assist you in entire procedure.
You can earn tax free income from FCNR/ NRE for maximum 2 years generally and after that one needs to pay tax on its interest.
So you must inform the banks and convert the same as soon as possible and pay tax on its interest.