Indian banks are requesting additional documentation and are now very strict on opening NRE / NRO accounts for holders of US passports (NRI SSN Number). All due to the Foreign Tax Compliance Act (FATCA) in the United States of America.
The US government wants to track the income of its citizens around the world. Since the world has to deal in US dollars, most countries have to follow their guidelines.
He was allowed to place a non-resident Indian, or NRI, to claim these funds in foreign bank accounts as legal income earned abroad. From now on, it will not be easy.
A few days ago, the income tax authorities added a new item to the tax return form (ITR2) which would require non-residents to disclose details of their bank accounts outside of India as NRI SSN number.
Most non-resident Indians, even those who have been away for years, are filing tax returns in India to cover their income from stocks, real estate and Fixed income instruments such as bank deposits and bonds.