- As the current status is Resident and not NRI, you can open resident savings and DMAT account. Grace period given is the option of the bank.
NRI status
Hello, 1. I was working abroad and I returned to India in Nov 2017 to complete a specialised course in my field for a better opportunity. 2. I finally got a break in late 2019 for a position abroad and I sent my documents for processing but unfortunately this Covid pandemic has delayed the process and the Company abroad too has not given me a specific timeframe up until now as they themselves are working from home. 3. In the meanwhile, I understand that I have lost my NRI status and I am now a resident Tax Payer. 4. But, my bank, with whom I hold my NRE/NRO accounts have given me an extended grace period to maintain my account as an NRE account in view of the pandemic and considering that I showed them all the documentation and an intention to join my job abroad. 5. I also hold an active NRI Trading/DMAT account with my Bank with a fair amount of stock holdings. 6. My Question: a. Can I parallelly open a Resident Savings and Trading/DMAT account with another bank or only a Resident Trading/DMAT account with Zerodha etc. b. If yes, how will it affect my NRE Account and Income Tax status? Thanks and Regards.
Asked 3 years ago in Income Tax
Hi,
No, you cannot open a resident account simultaneously while having a nom resident account.
it will be in violation of FEMA regulation.
Dear Sir,
Hope you are doing well !!
Indian Citizens are classified based on Residency into Two:
- Resident Indians
- Non Resident Indians or NRIs
A Resident Indian can only have a Resident Indian Bank Account. They cannot open an NRE Account.
An NRI can only have either an NRE or an NRO Account. They cannot have regular resident bank accounts.
So, you can't have both accounts simultaneously.
It is advisable to take a phone consultation for detailed discussion.
Practically holding an NRE account and opening a resident DEMAT account are two different things because holding an NRE account depends on rules of FEMA. So you may hold NRE account and simultaneously use resident demat account if you fulfill respective conditions.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.
Thank you.
Hi
As per my understanding you can't open both account parallelly .
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