Browsing: Tax on NRI Accounts

Navigating international tax systems is never simple, especially if you’re an NRI dealing with dual tax residency in the United States. This unique tax situation arises when you’re considered both a resident and non-resident of the U.S. within the same tax year—typically during the year of arrival or departure. If you’re unsure what this means for your tax filings, obligations, and deductions, this guide breaks it down step-by-step to help you stay compliant and optimize your tax outcomes. What is Dual Tax Residency? Dual tax residency applies when an individual is treated as both a resident and a non-resident of…

When an individual becomes a Non-Resident Indian (NRI), many financial obligations and legal responsibilities change. One critical change is the status of your savings account in India. According to India’s Foreign Exchange Management Act (FEMA), NRIs are not allowed to operate resident savings accounts and must convert these accounts into an NRO (Non-Resident Ordinary) account. This article will dive deep into why this conversion is necessary, its implications, and how NRIs can manage their savings efficiently. The Legal Obligation: Why NRIs Must Convert Savings Accounts Under FEMA guidelines, an individual is considered an NRI if they live outside India for…