At present, FCNR deposits can be held in four currencies: the US dollar, the pound sterling, the Deutsche mark and the Japanese yen. Now there will be a fifth currency for you to choose from. Your decision to opt for any currency depends upon your perception of the appreciation/depreciation of the currency of your choice against the other three (now four). I feel that the Euro will be more sturdy than the other currencies.

I left for an assignment in Kenya in February 1997 and came back in February 1998. As far as the AY 98-99 is concerned, I will be considered as an NRI. But at the time of coming back, some of my dues were pending, which I received in the months of May andJune 1998. As far as the actual receipt of the outstanding are concerned, I will be a resident in 1999-2000, whereas the income received by me is pertaining to the year in which I was an NRI.Secondly, I have not closed my NRE account, which I was supposed to close within a period of six months of my arrival. Can I continue with my NRE account after six months, as I am expecting some more funds from my previous employer abroad? If not, please suggest an alternative for the same.
--Anjay Manjerekar, Mumbai

NRIs who have returned to India on or after April 18, 1992, being continuously resident outside India for a period of at least one year, have, even after their return, been granted the general permissions to hold, transfer or dispose of their other foreign currency assets such as shares, securities, life insurance policies, immovable property outside India, etc. There is no need of any approval from RBI even after the NRI becomes, after his return, an Indian resident. This general permission will notapply on earnings from employment secured subsequent to the return.

From your query, it is apparent that you have decided to retain a part of your earnings with your ex-employer and, therefore, the amount will not attract any tax.

You should close your NRE and FCNR accounts as soon as you are fairly certain that you will not be going abroad once again to take up any assignments. This decision should be taken within a reasonable time. Incidentally, God (and your ITO) alone knows what is reasonable and what is not.

I am 80 years of age and my wife is over 77. I have a large holding in US-64. All my certificates mention `Anyone or Survivor'. However, the broker now says that all three persons named in the certificate must sign the certificate as also the `Repurchase Counterfoil' form. The third holder is an NRI, and it is difficult to get his signature. If this is true, then what is the use of the `Anyone or Survivor' option given in the original application form?
--R S Billimoria,Mumbai

Either your broker has not given you complete information or you have not understood him correctly. Strictly, `Anyone or Survivor' essentially means that the application for withdrawal or repurchase can be signed by any of the holders, not necessarily the first holder. The cheque will be drawn in the name of the applicant. This is the legal position.

UTI follows this practice whenever it receives any application for repurchase in the case of US64. You will realise that the redemption cheque drawn in the name of the second or third holder may cause some inconvenience to the first holder. To bypass this, many MFs have stopped offering either-or-survivor holdings. In the case of joint holdings, they offer strictly joint or `First Holder or Survivor' options.

There are some schemes of UTI/MFs that are listed and traded in the stock exchange. In such cases, the unit certificates are sent to the registrars of UTI only for transfer of the names. UTI does not have to make any payment to anyone. Insuch cases, all the holders will have to sign, even when the units are on an either or survivor basis.

The listing norms of all stock markets are linked with equities and no equity can be held on an either or survivor basis. The nomination facility is also not available for equities. The Companies Act is due for large-scale amendments shortly and thereafter, the listing norms will get revised. If you are intending to sell the US64 units in the market through your broker, all of you will have to sign. In case you desire to submit the units to UTI for repurchase, only one signature is enough

.In the case of deep discount bonds, the entire growth will be taken as interest if redeemed, or as capital gains if sold just before redemption. What is the legal position about the treatment of such interest or capital gain -- i.e., will the full interest be charged to tax in one year and, in the case of capital gains, can the indexation benefit be availed of? Please explain with reference to the deep discountbonds issued by Sardar Sarovar Narmada Nigam in 1993-94 at a discounted value of Rs 3,600, which will become Rs 1,11,000 after 20 years -- in 2014.
-- Y G Dabke, Nagpur

Where the bonds are redeemed, the entire difference between the redemption price and the issue price will be treated as interest received during the year of redemption. If the bonds are sold in the secondary market, the investor has the right to treat it as capital gains. However, Section 48 has been amended by FA97 and now indexation cannot be applied while computing capital gains on bonds and debentures, other than the Indexed Bonds issued by the government.The bonds of Sardar Sarovar Narmada Nigam are due to mature in the year 2014. The current tax provisions on long-term capital gains is contentious and challengeable. Therefore, it is not likely that the provisions will not get amended further during this period.