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Recent Immigrant

Planning to leave India and unsure what to do? Post a query and we'll be happy to help out.

Can Recent Immigrant continue to hold Indian Assets?


All kind of assets in India such as properties, bank deposits, stocks and securities, life insurance policies, loans, company deposits, debentures, bonds etc. acquired, held or owned by an individual while he/she was in India can be continued to be so held and dealt in any manner even after the individual leaves India for permanent settlement.

In view of the above, a Recent Immigrant on leaving India has to deal with his/her various accounts/activities in India in the following manner:


What shall be the impact on Indian Assets:

  • Resident Savings Bank Account: Designate the Resident Savings Bank Account to Non-resident Ordinary (NRO) Bank Account

  • Resident Current Account: Designate the Current Account to NRO Bank Account

  • Resident Fixed Deposit (FD): Designate the Resident FD to NRO FD. Further it is to be noted that, depending on Bank’s policy and procedures, FD may be directly designated to NRO FD or may be pre-matured and then open new NRO FD.

  • Shares, Debentures, Bonds, Units of Mutual Funds, etc.: A Recent Immigrant is required to inform all the companies, funds etc. as to change of his/her residential status from Resident to non- resident.


  • NRO Bank Accounts can be opened in the form of Savings, Current, Recurring, Fixed Deposit Accounts.

  • Recent Immigrant have an option to open and maintain NRE a/c and FCNR a/c only after becoming a NRI.

Business in India:


RBI has given general permission to NRIs to invest on non-repatriation basis by way of capital contribution in any proprietary or partnership concern engaged in any industrial, commercial or trading activity in India subject to FEMA provisions. However, the firm or proprietary concern should not be engaged in any agricultural/plantation activity or real estate business or print media.

Other Transactions:

Any receipt or payment of funds from / to Residents should be in accordance with the provisions of FEMA, i.e.

  • Providing guarantee to any person

  • Taking loans from any person

  • Acquisition and/or transfer of shares and securities

  • Granting loans and advances.

Points to Remember:

  • NRIs are eligible to repatriate income earned in India from rupee assets held in India up to USD 1 million per FY.

  • Recent Immigrant may opt to give a general / specific Power of Attorney (POA) to a close relative to take certain actions on his behalf while he is outside India.

  • NRI may be eligible to avail benefits of lower rates of taxes as may be prescribed by the DTAA entered into between India and his country of residence. He may also be eligible to claim foreign tax credit in his country of residence for the taxes paid in India.

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