How can a non-resident Indian (NRI) file income tax return (ITR) and e-verify it online since OTP (one-time password) messages can’t be delivered abroad?
NRIs can file their return online from wherever they are based and verification can be done via netbanking, which does not require an OTP.
My son, who is an NRI, has a resident fixed deposit (FD) and I intend to change this to non-resident ordinary (NRO) account after the FD’s maturity which incurs a 30% tax. Can I convert this account to a non-resident external (NRE) FD, thereby avoiding tax implications?
Once you move abroad and intend to stay there for a long term, you must convert all your resident accounts to non resident accounts including any deposits held.
Interest earned on NRE deposits is exempt from tax. Please make sure that you intimate the bank of the change in your residential status and follow the guidelines with respect to redesignating the accounts to non-resident as required.
Source By: livemint
