Effectiveness of NRI status

I am moving outside India from this march and would stay there for at least two years. I had a small query and would appreciate if anybody could guide me on this.

As per RBI rulings, for a NRI, its necessary to convert savings bank account to NRE/NRO account and similarly convert stock trading accounts and KYC status in mutual funds.

Since I am moving this march, around 30 days in this financial year, I would not be considered as NRI this financial year as per income tax rules.

Should I convert and update my bank accounts and KYC before moving outside or it can be done anytime before 182 days are completed in the next financial year outside India? Secondly, what would happen if it takes me 30 - 60 days more than 182 days to update everything?

Hi Sahebpreet,

For updating your KYC for your bank accounts, it might be necessary for you to actually become a NRI. Your tax documents of your country of residence might be required. So, it is best to visit the bank branch when you are abroad once you become a NRI.

As far as we know, there are no rules for updation of KYC within a particular period. However, it is best to do it as soon as possible so that you can take advantage of tax benefits.

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BB Expert

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