What About My Bank Accounts and Investments Abroad?
Many individuals who have lived or worked outside India often wonder – “What happens to my foreign bank accounts, property, and investments once I return to India?” The answer lies in the Foreign Exchange Management Act (FEMA) guidelines. Let’s break it down.
FEMA Guidelines on Holding Foreign Assets
1. Overseas Bank Accounts – You are allowed to maintain bank accounts abroad.
2. Overseas Property – Ownership of property outside India is permitted.
3. Mandatory Disclosure – All foreign assets must be reported in your Income Tax Return (Schedule FA) once you become a Resident in India.
Disclosure & Taxation Rules
You can hold foreign assets under FEMA, but once you qualify as a Resident & Ordinarily Resident (ROR):
1. You must disclose all overseas assets (bank accounts, shares, property, etc.) in your ITR.
2. These assets may be subject to Indian taxation rules, depending on income generated abroad.
3. Non-disclosure can attract penalties under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015.
Why This Matters
For NRIs returning to India or individuals with cross-border investments, compliance is key. While FEMA permits holding foreign assets, the Income Tax Department requires transparent disclosure and proper taxation.
Foreign assets are absolutely legal – but they must be managed the right way. At FINSIRI, we guide you through FEMA rules, income tax disclosures, and compliance to keep your finances safe and stress-free.
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