279. Status of OCI living in

India

Q: Hello, I have a OCI card and thinking of settling in India. I have few doubts. Could you please clarify. 1. What will be my status in India(NRI or something else)? 2. I already have PAN card will I need to change it? 3. What will happen to my NRE/NRO bank accounts, will those get converted to normal savings account? 4. Can I apply for normal DMAT account once I settled in India? Hoping to get answers for all questions. Thank you, Sachin A. When you live in India your status in India will be that of any other Indian resident for day to day activities. Technically you will always be a person of Indian Origin(PIO) because even though you may settle in India permanently, you would as an OCI hold a foreign passport. • Residential status is actually more important for OCI holders, when taxes are taken into account. For taxation purposes your residential status for the first two years (depending on the period of absence from India) will be considered to be RNOR (resident not ordinarily resident) status. Those with RNOR residence status are not taxed in India on their foreign income. • You can keep the same PAN. • NRO account will be re-designated to a regular bank account. NRE account can be deposited in a RFC account. Open a new RFC account and transfer the proceeds of your NRE account to the RFC account. RFC accounts can be maintained in currencies such as USD, GBP, JPY, and EURO. The Reserve Bank of India allows persons of Indian nationality or origin, who, having been resident outside India for a continuous period of not less than one year, and then become persons resident in India on or after 18th April 1992 to open and maintain RFC accounts in India. RFC accounts allow freely convertible foreign currency. • Yes, you can apply for 'Demat' account once you settle in India.