Q.1119 Change status of resident bank account to non-resident

Question: I am a punjab govt pensioner If I change the status of my a,c from residence non residence. can I frequenty operate my a/c.or is there some problem. What I have to do to change the status of my a/c Answer: To convert your domestic bank account to a nonresident bank account you need to contact your bank where your domestic account is held and ask them to change the domestic account to a nonresident account. Bank will require proof of your non-resident status such as visa etc. Bank will then transfer the funds of your resident account to the non-resident account. Generally as far as operation of a bank account is concerned for domestic or a rupee non-resident account, there should be no restrictions. Do be aware that banks treat domestic and NRI accounts differently for TDS purposes. See below.

TDS on domestic and NRI bank accounts

There is no TDS deducted by banks in India on interest earned from a domestic savings account of an individual. However, when it comes to non-resident bank accounts such as NRO, banks will deduct TDS. For domestic bank accounts, interest up to Rs.10, 000 earned from savings bank accounts is exempt from tax. In case interest earned is more than Rs.10, 000 in a financial year, the difference will attract tax and the account holder pays taxes as applicable when filling their income tax returns. For NRI accounts banks deduct TDS regardless of the amount of interest earned and the same is submitted to the tax authorities. To claim a refund of TDS NRIs must file an income tax return
NriInformation Questions &Answers
Read Disclaimer at bottom of page
NRI Information for OCIs - PIOs on PAN Cards, OCI, Visas, Property, Immigration, Customs Duties & more
Information by Virendar Chand
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
Previous Next Page
THE NRI GUIDE        V. K. CHAND THE NRI GUIDE  Policies - Procedures - Guide For NRI - OCI - PIO   THE NRI GUIDE Paperback or Kindle Edition Free delivery with Amazon Prime A Book for all NRIs, PIO & OCI V. K. Chand Available worldwide   NEW! EDITION BUY NOW
N
RI Information
Informing educating and connecting Indians across the globe
NriInformation Questions &Answers
Read Disclaimer at bottom of page
Previous Next Page
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
next next previous previous

Q.1119 Change status of

resident bank account to non-

resident

Question: I am a punjab govt pensioner If I change the status of my a,c from residence non residence. can I frequenty operate my a/c.or is there some problem. What I have to do to change the status of my a/c Answer: To convert your domestic bank account to a nonresident bank account you need to contact your bank where your domestic account is held and ask them to change the domestic account to a nonresident account. Bank will require proof of your non- resident status such as visa etc. Bank will then transfer the funds of your resident account to the non-resident account. Generally as far as operation of a bank account is concerned for domestic or a rupee non-resident account, there should be no restrictions. Do be aware that banks treat domestic and NRI accounts differently for TDS purposes. See below.

TDS on domestic and NRI bank

accounts

There is no TDS deducted by banks in India on interest earned from a domestic savings account of an individual. However, when it comes to non-resident bank accounts such as NRO, banks will deduct TDS. For domestic bank accounts, interest up to Rs.10, 000 earned from savings bank accounts is exempt from tax. In case interest earned is more than Rs.10, 000 in a financial year, the difference will attract tax and the account holder pays taxes as applicable when filling their income tax returns. For NRI accounts banks deduct TDS regardless of the amount of interest earned and the same is submitted to the tax authorities. To claim a refund of TDS NRIs must file an income tax return
BOOK for NRIs PIO, OCI Information at your fingertips!
Available worldwide from Amazon
Free delivery with Amazon Prime
nri guide v k chand NEW! EDITION