Facilities to Returning Indians

  Maintenance of Assets Abroad
A person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. NRIs/PIOs who return to India can freely maintain and operate their foreign currency accounts with banks abroad.

  Resident Foreign Currency Accounts (RFC)
Returning Indians, i.e. those Indians, who were non-residents earlier, and are returning now for permanent stay, are permitted to open, hold and maintain a Resident Foreign Currency (RFC) Account to keep their foreign currency assets with Banks in India. RFC A/cs. can be opened by the Returning Indians at 48 designated branches (list furnished separately) and accounts can be maintained as term deposits in US Dollars only for a period from 1 year to 3 years. The minimum deposit accepted is US $1,000. The balances in NRE/FCNB accounts and other foreign exchange funds brought in by the NRI at the time of return and subsequently from the assets maintained abroad can be freely invested in RFC accounts. Pension received from abroad can be credited to the RFC accounts. The funds in RFC accounts can be remitted abroad for any bonafide purpose of the account-holder or his dependents without RBI`s approval. The funds can also be utilised freely for investment outside India. The funds can of course be also withdrawn in Rupees for local payments. If the Returning Indian subsequently goes abroad to become an NRI, the balance in his RFC account can be converted to an NRE/FCNB account. Tax on the interest income from RFC account is exempted till such time as the Returning Indians maintain the status of 'Resident but Not Ordinarily Resident'.

  Import of Gold & Silver by NRIs
NRIs can bring into India gold upto 10 kgs. and silver upto 100 kgs. as part of their personal baggage once in 6 monthsprovided they have stayed abroad for a continuous period of 6 months. The gold may be brought in any form, (except as ornaments studded with stones and pearls). The NRIs will have to pay customs duty in foreign exchange at the rate of Rs.250/- per gm of gold and Rs.500 per kg. of silver. The gold and silver can be sold to residents, but the sale proceeds will have to be routed through the NRO account of the seller.

  Concesstional Tax Teatment for Foreign Exchange Assets
NRE/FCNB deposits with banks registered in India and investments in government securities and company debentures out of foreign exchange funds would be eligible for a flat income tax of 20% (exclusive of surcharge) on their income, after the permanent return of the NRI. (The concession will be available till the maturity of these investments)