I recently got my US green card and I file my Income Tax Returns (ITR) in India regularly. Is it possible to transfer these to a Non-Resident Ordinary (NRO) demat account? Can I sell shares and then transfer the money to an NRO account? Will Foreign Account Tax Compliance Act (FATCA) applicable on this?

Bhagath Bhagath
Answered on February 05,2020

You are required to inform your bank or service provider about change in your residential status and request for your holdings to be moved to an NRO demat account. As a Non-Resident Indian (NRI), all your demat holdings must be moved to an NRO demat account. Besides, you must comply with Foreign Exchange Management Act (FEMA) and the Reserve Bank of India rules related to demat account holdings and investments. You can sell these holdings and receive the proceeds in your NRO account and further remit them to your country of residence after meeting specified conditions. FATCA compliance is required, and it may be requested at the time of conversion to NRO demat account.