Quick Answer: Is EEFC Account Mandatory?

There’s nothing illegal about establishing an offshore account unless you do it with the intent of tax evasion.

The Foreign Account Tax Compliance Act (FATCA) requires banks around the world to report balances and any activity of American citizens to the IRS or face fines..

What is EPC limit?

Exporter can avail pre-shipment credit in the form PCFC (packing credit in foreign currency) or EPC (export packing credit in INR). As the name suggests, this facility is given only to procure raw material, do processing & packaging till the final shipment happens.

What is the time limit for the settlement of normal import payment?

5.1 (i) of the ‘Master Direction on Import of Goods and Services’ dated January 01, 2016 (as amended from time to time), in terms of which remittances against normal imports (i.e. excluding import of gold/diamonds and precious stones/ jewellery) should be completed not later than six months from the date of shipment, …

How much money can you have in a foreign bank account?

Key Takeaways. Any U.S. citizen with foreign bank accounts totaling more than $10,000 must declare them to the IRS and the U.S. Treasury, both on income tax returns and on FinCEN Form 114.

Can I open an international bank account?

Most countries require an initial deposit, your passport and proof of residence to open a bank account. Some countries could also require a certified copy of your birth certificate or a second form of identification. In some cases, you will also have to provide a statement about your reason for opening the account.

Is keeping foreign currency illegal?

You should always be careful to surrender your forex amount after making a trip to abroad. Keeping foreign currency is a serious violation of the FEMA Act and could entail one landing in jail as well.

How many dollars can I keep at home in India?

Travellers are allowed to purchase foreign currency notes/coins only up to US$ 2000. Balance amount can be taken in the form of traveller’s cheque or banker’s draft.

Which bank is best for NRI account in India?

List of Top 10 NRE Saving accounts for NRI’s, Interest Rates, Min. BalanceBank NameInterest rate (%) Per AnnumAxis Bank3% to Repo + (-0.65%)Kotak Mahindra Bank3.50%ICICI Bank3% to 3.50%SBI Bank2.70%5 more rows•Dec 13, 2020

Who can open an EEFC account?

Who can open an EEFC account? Ans. All categories of foreign exchange earners, such as individuals, companies, etc., who are resident in India, may open EEFC accounts.

How long can you keep money in NRE?

If you are returning after being NRI for 5 continuous years or less, you become a resident (ROR) immediately (as per Income Tax Act). If you are returning to India after being NRI for 6 continuous years, you can become RNOR for one year. Subsequently, you become ROR.

What is RFC savings account?

An RFC (Resident Foreign Currency) Savings Account is a savings account maintained in foreign currencies – USD and GBP – for NRIs who have returned to India and hold funds in foreign currency.

Which account can be opened in a foreign currency?

Answer: Unless otherwise specifically stated in the features of the account, a foreign currency account maintained by a person resident in India with an authorized dealer in India can be opened, held and maintained in the form of current or savings or term deposit account in cases where the account holder is an …

What is RFC domestic account?

RFC domestic account An RFC (D) account is a Resident Foreign Currency (Domestic) account. The differences are that the RFC (D) account can be only a current account and it does not earn any interest. Funds from NRE accounts cannot be transferred to an RFC (D) account.

Can NRI open foreign currency account in India?

A returning NRI has the option of bringing the funds to India by opening a Resident Foreign Currency (RFC) account with a bank here. An NRI would have assets and bank accounts abroad. … The funds in a RFC account are held in foreign currency and can be transferred to NRE/FCNR accounts if the person returns abroad.

Can Indian resident open foreign bank account?

An Indian resident is allowed to open an foreign bank account under the Liberalised Remittance Scheme for undertaking current or capital account transactions. They can remit money from India – only up to a specified limit within a financial year – as prescribed under the Foreign Exchange Management Act (Fema) of 1999.

Can Pcfc be credited to EEFC account?

Surplus of export proceeds available after adjusting relative export finance and credit to EEFC account should not be allowed for setting-off of import bills. … For the purpose of reckoning banks’ performance in extending export credit, the rupee equivalent of the PCFC may be taken into account.

What is Pcfc limit?

PCFC is the packing credit limit provided in the foreign currency to the exporters enabling them to fund their procurement, manufacturing/ processing and packing requirements. The PCFC can be availed in US$, Euro, GBP and Japanese Yen.

What is difference between NRO and NRE account?

The difference between NRE & NRO accounts An NRE account is a bank account opened in India in the name of an NRI, to park his foreign earnings; whereas, an NRO account is a bank account opened in India in the name of an NRI, to manage the income earned by him in India.

How much cash can I keep at home legally?

It is legal for you to store large amounts of cash at home so long that the source of the money has been declared on your tax returns. There is no limit to the amount of cash, silver and gold a person can keep in their home, the important thing is properly securing it.

Which is better FCNR or NRE?

Mashruwala adds, “If you are certain that you will repatriate the maturity proceeds, then it is best to invest in the FCNR as you protect yourself against currency risk. Conversely, if you are certain that your investment will remain in India, NRE would be a better choice.”

At present, a resident in India is permitted to retain up to $2,000 or its equivalent in cash and/or travellers cheques provided the foreign exchange has been acquired through legal channels.