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 NRI while he was in India can be continued to be so held and deal in any manner even after the NRIs leave India for permanent settlement.
Persons who have left India recently for business / employment abroad are required to complete certain formalities as below:
Banking Accounts: Your resident savings bank account has to be re-designated to Non Resident Ordinary (NRO) savings Bank account.
NRE / (FCNR) Deposit account can be opened only after becoming an Non Resident Indian (NRI).
Shares, Debentures, Mutual Funds and other Securities: The companies, Depository participants, mutual fund houses, Brokers etc. needs to be informed regarding the change of residential status.
Existing business in India: NRIs are allowed to invest in any Proprietary or Partnership concerns in India subject to the provision of FEMA. However, it should not be engaged in any agricultural/plantation activity or real estate business or print media.
Repatriation: NRIs are eligible to repatriate Income earned in India from rupee assets held in India.
Other Transactions: Any receipt or payment of funds from / to a Resident including providing guarantee to any person/taking loans from any person/acquisition of shares and securities/granting loans and advances should be in accordance with the provisions of FEMA.
DTAA: An NRI can take the benefit of DTAA provisions entered into between India and the home country which can give the benefit of tax credit or exempts the income from taxation or the withholding tax rate for a particular lower.
While filing the Return of Income in India with the Income Tax Department, heshall have to change his residential status accordingly.He should inform any other payer (Tenants, etc.) in India that his residential status has changed as tax is required to be then deducted at the rates applicable for an NRI.He may opt to give a general / specific Power of Attorney (POA) to a close relative to do things on his behalf while he is outside India.