My mother is a British citizen, who was resident of India since the mid-1970s. Since February 2015 she has been staying in the UK. We earn rental income in India and she holds an NRO account here. Taxes are assessed in her name as all the assets were earned by her and my father.
My mother had a residential visa. Recently, her application to upgrade from Person of Indian Origin (PIO) to Overseas Citizen of India (OCI) was declined.
1. What is her residential status? On the tax return, it shows ‘resident’. Based on her residential status, is she eligible for an Aadhaar number? Can she be treated as an NRI?
2. Can my mother continue to hold bank fixed deposits in India or should they be transferred to an NRO/NRE account? How will she pay taxes from abroad, or can the bank do it? There is also a savings account in her name to which I am a nominee. I operate this account. Should I close this account?
