Giving Up Indian Citizenship: Financial Impact Calculator
Evaluate the monetary, taxation, and regulatory consequences of surrendering your Indian passport for foreign citizenship (US, UK, Canada, UAE, EU, Australia, Singapore) vs acquiring OCI status.
This simulator evaluates cross-border tax withholding, FEMA banking mandates, and asset repatriation caps using statutory provisions. Because foreign exchange laws and Double Tax Avoidance Agreements (DTAA) vary by jurisdiction, users must exercise independent judgment and consult a cross-border Chartered Accountant (CA) or tax attorney. Read our full Legal & AI Disclaimer.
Your Indian Asset Profile
Banking & Fixed Deposits
Mandatory change under FEMA Section 10(4):
- Must re-designate resident savings accounts to NRO (Non-Resident Ordinary).
- Interest on NRO is subject to 30% + cess (31.2%) TDS at source.
- Can open NRE & FCNR accounts: 100% tax-free in India and freely repatriable.
Property & FEMA Rules
Real estate ownership rights under OCI:
- Can Hold & Buy: Residential & commercial property without RBI approval.
- Strict Ban: OCIs CANNOT purchase agricultural land, farm houses, or plantation property.
- Existing inherited agricultural land can be held, but can only be sold to resident Indian citizens.
Govt Savings Schemes
Eligibility for post-office & sovereign instruments:
- PPF: Can continue existing account till 15-yr maturity, but NO 5-year extension allowed.
- SSY / SCSS / KVP / NSC: Non-residents & OCIs cannot open new accounts.
- NPS (Tier 1): Can continue and contribute via NRE/NRO accounts up to age 70.
Cross-Border Tax & Compliance
Tax treaty & reporting impact:
- PFIC Warning (US): Indian Mutual Funds are classified as Passive Foreign Investment Companies (PFIC) by IRS under Form 8621, taxed at punitive top marginal rates.
- FBAR & FATCA: Mandatory disclosure of Indian accounts exceeding $10,000.
- DTAA Relief: Foreign Tax Credit (FTC) can be claimed for taxes paid in India to avoid double taxation.
Capital Repatriation & Exit Tax Summary
FEMA / RBI Regulations| Asset Class | Asset Value (₹) | TDS Withholding Rate | Repatriation Mode |
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Surrendering Indian Passport: What You Must Know
India does not permit dual citizenship under Article 9 of the Constitution of India. When you acquire foreign nationality, you must formally surrender your Indian passport within 90 days and obtain a Surrender Certificate. Most individuals subsequently apply for an Overseas Citizen of India (OCI) card.
What You KEEP With OCI Card
- Lifelong Multiple Entry: Travel to India without a visa anytime.
- Parity with NRIs: Economic, financial, and educational parity with non-resident Indian citizens.
- Property Rights: Retain all inherited property and buy new residential/commercial buildings.
- Repatriation: Remit up to $1,000,000 USD per financial year from NRO accounts subject to Form 15CA/15CB CA certification.
What You LOSE Permanently
- Voting Rights: Cannot vote in Indian legislative or parliamentary elections.
- Public Office & Govt Jobs: Ineligible for constitutional posts, civil services, or defense roles.
- Agricultural Land: Cannot acquire agricultural property, plantation land, or farmhouses.
- Subsidised Schemes: Cannot invest in small savings schemes like SCSS, KVP, or open new PPF accounts.