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3 ways India welcomes NRIs back
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This video highlights the NRI-friendly provisions in India for NRIs returning home permanently.
Are you an NRI planning to move back to India? Good news, then! The country has many NRI-friendly policies to help you ease back in. Here are 3 of them. Firstly, your residential status goes through a transitional phase. You go from being an NRI to being a Resident but Not Ordinarily Resident - RNOR. The RNOR status typically lasts for 2 years. During this period, you will continue to enjoy most of the tax benefits applicable to NRIs, such as tax exemption on FCNR deposit interest, foreign rental income, and capital gains from the sale of foreign assets. Secondly, if you have an NRE FD that matures after you return to India, you will need to convert it to a resident FD when you move back home. The good news? This conversion does not attract any penalty. Plus, the rate of interest and the maturity date remain unchanged. Lastly, are you bringing home foreign currency from your overseas bank accounts? In that case, you can make use of the special Resident Foreign Currency or RFC scheme. With an RFC account, you can safely park your foreign currency funds after you’ve returned home. So, see how India has many friendly policies for returning NRIs? Remember to make use of them if you are contemplating permanent settlement back home in India.