• Regarding domestic bank account for NRE

Sir/mam

I am a seafarer and I have a NRE account in which I am getting my salary. I am in this field from last 5 years. I am filing my return income as tax free when I am completing 183 days outside India. At present i have bank account in 4 domestic banks. I have read somewhere that if I am getting NRE benefits I am not allowed to open domestic bank accounts. Is it right ? Do I have to close all my domestic accounts? I have 1 joint account with my father do we need to close that account also?

Now this year I am not bale to complete my NRE days and my income is about Rs 1260000. How much tax I have to pay?

what is the penalty if I am filing wrong return. 

Thanks in advance
Akarshan
Asked 1 year ago in Income Tax from Kangra, Himachal Pradesh
Dear Sir,

As discussed by you you do not hold resident status and a party who do not hold residential status cant have a domestic bank account and if any held by him earlier need to be converted into NRO / NRE Account.

So either you close all domestic account or convert them into NRO / NRE Account. However you are allowed to keep joint account with any resident subject to you are second holder of account

In that case the total income tax payable without any deduction shall be Rs. 2,09,090/- .There is no penalty for filing wrong return unless you have defaulted in tax payment.
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

Hello Akarshan,

It is not necessary to close down all the Bank Accounts.

You may have to shell out Rs. 210,000/- approximately excluding Interest.

There is no penalty for filing wrong returns, the penalty is only if you evade taxes.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

Sir, 

This amount is nothing but maintenance expenses for your family. You can show this amount as gift to your father and it will be exempt.
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

Dear Akarshan,

I am not sure about your individual accounts but certainly you can keep your joint bank accounts in India even if you are an NRI.

If you are a resident in a particular year, you have to pay taxes as per the slab.

Please feel free to call/ revert in case of any doubts

Thanks and Regards 
Abhishek Dugar 
CA CS B.Com
Abhishek Dugar
CA, Mumbai
2788 Answers
114 Consultations

5.0 on 5.0

I think this query is already answered by other experts.
B Vijaya Kumar
CA, Hyderabad
834 Answers
47 Consultations

5.0 on 5.0

Hello Sir,

There is no issue in you transferring the money into your fathers account as it is already a tax paid amount by you. 

He need not show it in his returns.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

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