New Delhi, June 23 -- Q. I have been an NRI for the past 24 years. I have some NRE and FCNR deposits which will mature after 1-April-2026. If I come back to India in July 2025 for good, my residential status for AY-2026-2027 will be Resident but Not Ordinary Resident (RNOR). Do I have to liquidate all my NRE and FCNR deposits or can I hold these deposits up to maturity? How will my tax liability be determined for interest on such fixed deposits?

Interest on NRE (Non-Resident External) deposits as well as FCNR (Foreign Currency Non-Resident)depositsare fully exempt in the hands of a non-resident as per the provisions of the Income Tax Act, 1961.

When you come back to India with an intention to stay in India for an indefinite period, you ...