F. PLEASE
REMEMBER
1. Both resident and non-resident Indians
can become joint account holders of NRO Account.
2. Only NRIs can become joint account
holders of an NRE account.
3. You can transfer funds from an NRE
account to an NRO account or repatriate it to another country.
4. You cannot transfer funds from an
NRO account to an NRE account.
5. A resident Indian can also operate
the NRE account, apart from the account holder(s), for making local payments
and handling existing investments, as long as he has the Power of Attorney, but
not for opening new investments.
6. As an NRI, you will not be eligible
to invest in PPF and small savings.
7. For mutual funds investments, a new
KYC (know your customer) form will have to be filled up again, mentioning the
change in your residency status as NRI, and also your NRO account number, so
that SIP debits can take place smoothly.
8. Maintain your life insurance,
mediclaim insurance and home insurance in India, as they are all valid for
NRIs. However, claims are not met for hospitalization abroad, so an addition
mediclaim insurance can be taken in the foreign country for local use.
G. INCOME REPATRIATION RULES FOR NRIs
·
The source of funds used by a NRI should be
identified at the time of investing in order to decide if the money can be
taken outside the country on sale or redemption.
·
If the source of funds is foreign currency, it
can be sent without any restriction.
·
If, however, it is Indian rupees, it cannot be
remitted.
·
These two sources cannot be clubbed together.
·
The bank account through which the investment is
routed is used to determine the source of funds.
·
The funds that are remitted from abroad into the
NRE or FCNR accounts and invested can be freely sent back.
·
The income earned in India on investments is
repatriable, irrespective of the source of funds.
·
This includes interest from bonds and bank
accounts, rental income, dividends from shares and mutual funds.
·
The income earned on an investment is freely
repatriable once the taxes have been paid according to the Indian laws.
·
The income in the form of sale proceeds from
capital assets, such as property, land, shares, bonds, and mutual funds held in
India, are repatriable to the extent of funds remitted from abroad for buying
these capital assets.