EMIGRATING INDIANS - FORMALITIES Bank Accounts   All resident bank accounts will be re-designated as Non-Resident (Ordinary) Accounts. A simple letter is to be submitted to the bankers requesting them to convert the existing account to NRO Account. Note:   a. Expenses for travel within India is a permitted debit without RBI permission.   b. Utilisation of funds in NRO accounts for payment of passage fares for NRI's own travel to and from India  as well as for similar travel of their wives, children and other dependents is allowed without RBI permission.    c. If a person going abroad desires to maintain his parents/relatives in India, the account can be opened jointly with relatives concerned or he can have joint accounts with residents in India.   Shares      The change of residential status should be intimated to the Company where the emigrating Indian holds shares or debentures.  A non-repatriation undertaking is also to be given to the Company.    The following information is to be given to the Company:   a. Date of leaving India   b. Foreign address   c. Number of shares held and their face value    d. Name and branch of the bank where the NRI's bank account is maintained (preferably with a/c number) No permission is required for holding property in India, while emigrating. After attaining NR status, if investment is made in residential immovable property in India, the rent so accrued thereon shall be credited to the NRO account of the non-resident.    Immovable Property FAQs No permission is required for holding property in India, while emigrating. After attaining NR status, if investment is made in residential immovable property in India, the rent so accrued thereon shall be credited to the NRO account of the non-resident. Top Deposits with the Companies Any income arising out of these deposits shall be credited in the NRO account of the emigrating person.    Loans against Company Deposits Authorised dealers may grant loans and overdrafts to non-resident persons against the security of deposits held by them in Indian companies, according to their commercial judgement.     Units of U.T.I. and Government Bonds No permission of the Reserve Bank of India is required for holding units of U.T.I. and bonds of the Government.    Gold and Jewellery No permission of the Reserve Bank of India is required for keeping gold, jewelry and precious stones in India.     Status The emigrating Indian can continue as a Trustee of a private or public Trust without the permission of Reserve Bank of India    Continuation as Karta of an HUF (Hindu Undivided Family) The emigrating Indian can also continue as Karta of HUF without the permission of Reserve Bank of India.     Continuation as Director in a Company No special permission is required by the non-resident to continue as a director of an Indian company. There is no restriction for recieving payments while on official duty. Example : Visit to India for company's board meeting Towards sitting fees / commission or remuneration as per the company's MOA. Top Status of loan granted before a person becomes non-resident When a person resident in India avails a loan from a bank and subsequently attains non-resident status; he must submit an application with the following particulars to the relevant bank:    a. Country to which the person has gone    b. Reasons for leaving India    c. Probable duration of the stay abroad if the person is not leaving India permanently   d. Reasons for continuance of loan or overdraft Banks may grant loans or overdrafts on security of fixed deposits subject to usual terms and conditions except for the purpose of relending, carrying on agriculture / plantation activities or for investment in real estate business. Loans can  be given  :   a. for Investment in India   b. for aquiring residential flats / houses   c. for bona fide purposes outside India   d. against security of NRNR deposits   e. against resurgent India Bonds issued by SBI against security of immovable property (Housing Loans) against securities provided in India for utilisation abroad    Loans to residents against securities provided by non-residents Loans are granted to residents against security provided by non-residents.     Giving Power of Attorney This Power of Attorney should preferably cover:   a. Portfolio and Real Estate Management   b. Bank Accounts   c. Applications to RBI   d. Filing of return, refunds and representing before tax and appellate authorities   e. Matters incidental to the above   Obtaining Income Tax Clearance Certificate 1. Application is required to be made to obtain a tax clearance certificate by two categories of persons leaving India, namely:   a. those not domiciled in India; and    b. those domiciled in India but who, at the time of thier departure, have no intention of coming back to India. 2. Normally all direct taxes found due must be paid before the tax clearance certificate is issued.  In exceptional cases, sucha  certificate is also issued on the production of a document of guarantee by a bank or from anohter person which is acceptable to the Assessing Officer issuing the certificate. 3. The emigrating Indian has to make an application in Form-31 to the Assessing Officer, Foreign Section for Obtaining IncomeTax Clearance Certificate. 4. In case the emigrating Indian is assessed to Income Tax in India before making the application in Form-31 he first has to approach his Assessing Officer for issuing authorisation in Form-32 to the foreign section confirming that he is clear of his tax liabilities. 5. The Tax Clearance certificate is given in Form-33.