RBI allows transfer from NRO to NRE account 3: Procedures for Transferring funds

A lot of NRIs have shown interest in transferring funds from NRO to NRE since the notification came out on May 7, 2012. However, very few have actually transferred funds. This is mainly due to the lack of awareness or experience in newly issued notification in case of NRIs, Banks as well as Chartered Accountants. Additionally, most of the queries from NRIs have been for the procedural aspects only.
After successfully helping my clients in transferring funds from NRO to NRE,  based on my experience, I have summarized the procedures in 4 simple steps as follows:

1. Obtain Chartered Accountant (CA) Certificate in Form 15CB

    • Select and Consult a Chartered Accountant
    • Explain your situation
    • Provide documentation/explanations
    • CA will verify the source of funds and whether income tax is deducted and/or paid
    • On verification, CA will issue certificate in the prescribed Form 15CB

2. Submit Form 15CA online

    • Access www.tin-nsdl.com
    • Click “Services” and then “Form 15CA”
    • Read Guidelines and familiarize with Form 15CA requirement
    • Click “Form 15CA (Online Filing)” in the Forms section
    • Fill up all the information as required
    • Click “Proceed”
    • Please review the details and then confirm to upload the form electronically
    • On Confirmation, the form is electronically submitted to the Income Tax Department
    • Form 15CA with an Acknowledgement No. is generated
    • Print and sign the form

3. Submit documents to Authorized Dealer/Bank where NRE accountis kept

    • Form 15CA
    • Form 15CB
    • Check (cheque) or Demand Draft for the amount
    • Request letter or Form as per respective bank’s requirement
    • Complete any other document, requirement or formality

4. Transfer: On verification of submitted documents, Bank will process the transfer and credit NRE account.
Obtaining CA certificate is the most important and most time consuming step. Each CA will have his/her own procedures to verify the source(s) of funds and whether source is tax exempt and/or income tax is paid. Once you complete Step # 1 (obtain CA certificate in Form 15CB), other steps could be completed within a day and mostly the same day.
The key thing in verifying the source is determining the sources of funds. For Example, if you have a NRO FD of 3 years maturing on July 31, 2012. Source of fund is not NRO FD matured on which TDS deducted but it consists of 1. Principal when FD was made in 2009 and 2. Interest on the Principal from 2009-2012. Interest on NRO FD is considered current income and is taxable in India. While TDS could be deducted on Interest (current income), it is also important to verify the source of Principal. The CA certificate includes verification of all sources of NRO funds.
Things to consider/remember:

  1. Every bank’s process and procedure for transferring funds from NRO to NRE is different so it is advisable to inquire, know and understand the procedures of the bank with which you have NRE account.
  2. Filing Form 15CA is very important as the form is electronically submitted to the Income Tax department. Any error could generate an inquiry from the Income Tax department.
  3. As Part B of the Form 15CA is filled based on CA Certificate issued by the Chartered Accountant in the Form 15CB, experience of a Chartered Accountant in dealing with NRIs and issuing CA certificate especially for NRO to NRE transfer should also be considered.
  4. Even though RBI issued the notification allowing transfer from NRO to NRE on May 7, 2012, there is still lack of awareness among bank employees of the procedures and/or requirements.  E.g.  Bank employees may not know the BSR code of their own branch and could take few hours to a day to respond. Please note that BSR code of bank branch is a basic requirement (more than 3 years old) for any remittance, irrespective of the purpose and to be included in #4 of the Form 15CB whereas this notification came out less than 3 months ago. So, it is important to work with a knowledgeable bank person or have someone to liaison with the bank and/or have patience.

In summary, Nothing should deter you from transferring your funds from NRO to NRE account. My advice is to transfer funds from NRO to NRE as soon as possible to enjoy 5 benefits and reduce tax drag with the help of your experienced Chartered Accountant.
Please note that the rules and forms for the transfer have been revised via CBDT circular 67 dated Sept 2, 2013. For more information, users comments and my answers/explanations, visit my blog “15CA/CB rules revised Again: 15CA/CB May NOT be required for NRO to NRE transfer”
The rules and procedures have been revised again. For the latest procedures and requirement as on April 1, 2016, please visit my recent blog 15CB, 15CA Procedures Updated: Understand new procedures applicable from April 1, 2016.

About Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) Mr. Jigar specializes on NRI Investments and Taxation. He is proud to be one of only 21 CFA Charterholders in India working as consultants. (In 2011, when he became CFA Charterholder, out of 97,173 CFA Charterholders in the World, only 697 Charterholders were in India and only 3% work as consultant; Source: www.newcfa.org). He received his MBA (Finance) from University of Illinois, Chicago, USA, CPA from USA and a Chartered Accountant from India. Jigar has over 15 years of professional experience including more than 4 years with KPMG USA’s Risk Advisory Services. Currently, he provides Wealth Management and taxation consulting serving clients from USA, UK, Americas, Europe, Middle East, Asia, Africa, Australia and India.


  1. Dear Jigar,
    I believe, there is only transfer of funds from NRO to NRE account.
    From where is the question of TDS coming into picture?
    If you can throw some light on this?

    • Dear Mr Mehta,
      its not about tds at the time of transfer, but payment of tax before transfer which may or may not be by way of tds, in my view.

  2. I am an NRI working in UAE, I earn rental income on my property in India, proceeds are deposited into my NRO a/c. Can these funds be transferred to NRE a/c after TDS has been deducted.

    • These funds can not be directly credited to NRE account. However, you may transfer the funds to NRE after furnishing details and performing certain procedures in consultation with your CA and your bank. Thanks.

  3. Sir,
    I need 15CB from my CA who is also filing for my tax returns. I am paying regularly for the tax returns being filed.
    I want to remit certain amount to USA from my tax paid and declared NRO account. I am going to ask my CA to prepare the 15CB certificate. Am I supposed to pay separately for the certificate(15CB) ?, if so how much ?.
    I am not sure and would like a professional opinion.
    Thank you in advance.

    • As issuing CA certificate in 15CB is an additional work and also a certificate that require CA to go through documents and verify the source as well as taxability of amount to be transferred, CA would charge some fees. However, whether CA charges the fees or not and how much, that would depend on your relationship with the CA, time involved in verification as well as quantum of work / fees paid by you for other services, among many other criteria. The best way to know is to contact your CA and ask him. Thanks.

  4. Hi,
    Can you please tell if a payment of about 36000 dollars to a university towards fee would require submission of Forms 15CB, CA also.

    • Just provide the admission letter and fee invoice and bank will make payment. No 15CB/CA required.

  5. Mr. Jigar Patel ,
    In your blog you have given very good advice but no contact details. How do i get in touch with you for 15CA/CB forms ? Would you be able to help me ? I need to transfer some funds from my NRE/NRO Account to my account in USA.
    Thank You.

    • Please check our contact details in the Contact Us section. Thanks!

  6. I recently tried to transfer funds from my NRO account to NRE account held with ICICI. Having got the required certificate as mentioned above from my CA and completing all the bank docs, I was told I still cant transfer the funds, as the funds in my NRO account had not originated from the NRE account and hence is not repatriable back to NRE. The funds I have in my NRO, has been from rental income and some through savings before I became an NRI. Can you please advise if the bank was right in their judgement? and
    If yes, is there another method to transfer funds either to my NRE or my offshore bank account.
    If not, will you be willing to help me with this, or at least direct me to the right person.
    Many Thanks in advance.

    • There is no such requirement. Both Local and remitted funds can be transferred to NRE account with CA certificate and 15CA acknowledgement. There may be some issues relating to how 15CB/15CA have been filled/filed.

  7. Dear Mr. Patel,
    I recently remitted funds from USA to my ordinary account in India by mistake. Now, I want to transfer it to my NRE account. The source of fund is USA and is already tax paid in the US.
    I wanted to know if this transfer will cause any additional tax liability in the US or India?
    Thanks in advance,

    • No additional tax liability. Tax liability is on income. If your funds in NRO earned any income, you would pay tax on it. Assuming your income in USA while you were a NRI, generally not taxable in India.

  8. I closed my NRO FD three months back and transferred the sum to my Mother so as to avoid filing returns every year. Only recently I found out about NRO -NRE transfer. Is it possible now to go back and transfer the funds back to NRE.

    • Yes, it is possible. But, you will need to follow all related procedures.

  9. I have two questions.
    1. I have moved money from NRE to NRO account in error. As I was not aware of the 30% tax. Now if I want to move that money back into NRE will I have to first pay tax and then transfer it back.
    2. I purchased some Silver by trasnferring money from UK to NRE account. Now If I want to sell the silver again in India with little profit can i get that money back into my NRE account or it will have to sit in NRO account?
    Looking forward to your guidance.

    • 1. There is no tax on transfer. You would pay tax on the interest, which I would think deducted as TDS. No more tax to be paid.
      2. Profit from ANY investments can not be credited to NRE. Any profit needs to be credited to the NRO only and then after payment of tax (or after TDS) can be transferred to NRE account.

  10. whether it is mandatory to give 15cb even when funds were transferred from nre to nro and now want to transfer back to nro ( only the principle portion)

    • Yes, Currently it is required. However, CBDT has changed the rules effective October 1, 2013 and you may not require the 15CB certificate or file 15CA online to Income tax department. Please see my blog at http://nareshco.com/blog/?p=909 for details. Thanks.

  11. Dear Jigar
    I am selling a apartment which I purchased 8 years back in India and buyer will pay the amount to my NRO account.
    I would like to tranfer this amount to NRE FD , please let me know what kind of tax I have to pay and what will be the procedure ?

    • If you bought the apartment from NRE funds, you can credit funds (upto cost price) to NRE account for maximum of 2 apartments. All gain will be credited to NRO account. If not, all amount will be credited to NRO account. You will need to calculate the tax on the transfer and buyer would have to deduct TDS and only the balance amount will be credited to NRO account. Once taxes paid, funds can be transferred from NRO to NRE and you can create the NRE FD with the bank. Thanks.

  12. Dear sir,
    I have gifted my son who is NRI an amount of 1Lakh recently and is credited to his NRO account. Can he transfer this amount to his NRE account without paying tax at source?

    • Gift from father to son is not taxable in India. Also, transfer from one account (NRO) to another account (NRE) also does not attract any taxes. So, your son may be able to transfer funds from NRO to NRE without paying any taxes. Thanks.

  13. I have money in ICICI Bank, Jaipur Branch. I have both NRO & NRE account in ICICI Bank. Money has been sent to NRO account from USA ib Dollars. Can you please help us in transfer of money fron NRO to NRE Account.

    • From October 1, 2013, 15CB/CA required ONLY for taxable transfer. I think your transfer won’t be taxable as TDS, if any, on the NRO FD would have been deducted.Please refer to my related blog at http://nareshco.com/blog/?p=909. Please contact the ICICI bank in Jaipur and explain your situation. They will be able to transfer the funds just by your request letter and declaration/undertaking. Good luck and share your experience. Thanks.

  14. Dear Mr. Jigar,
    I have read all your blogs with interest and appreciate your effort in providing professional and clear answers to who require clarifications or who might not have a good grasp of accounts, investments, rules & regulations.
    My query is:-
    I have purchased some years ago thru online ICICI direct website shares in ICICI bank. By some mistake of my own the shares have been purchased as NRO. How do I transfer these shares back to NRE?
    Kindly advise.

    • You can not transfer the shares back to NRO as your shares would have been credited in NRO-Demat account and purchased from NRO-PIS account. When you sell, proceeds would be credited to NRO account and you may be able to transfer the funds from NRO to NRE and then buy shares from NRE. Thanks.

  15. Dear Sir,
    I am a senior citizen having income below taxable limit. If tomorrow I decide to become N.R.I. can the Sav. & f.d a/c be transferred directly into n.r.e. a/c. or that I have to transfer first in n.r.o. a/c & then into n.r.e. a/c.?
    I wish u could reply on my e mail a/c.
    Thanks for providing valuable information.
    Yours Sincerely,

    • If you become NRI under FEMA, your resident account would be converted to NRO account and not NRE account. The credits to NRE are restricted and that is the reason it enjoys additional benefits such as tax-free interest and full repatriability. Once your funds are in NRO, you may transfer the same to NRE after performing certain procedures and furnishing information in 15CB/15CA. Thanks.

  16. Sir,
    One of our client want to transfer the whole amount from NRO account to NRE account. The money available in NRO is completely towards rental income, capital gain & interest income of last 4-5 years. TDS has been correctly deducted on all the income credited in NRO account. Please tell me the procedure.

    • First, please determine if the nature of transfer is included in the “Specified List” as per the revised CBDT circular. If yes, you may not need to furnish any information or submit 15CB/15CA. If not, please consult your CA and he will help you complete the procedures and transfer your funds from NRO to NRE. Thanks.

    • Thank you. We really appreciate your support and comments. Do keep visiting our blog and posting your comments. Thanks.

  17. Dear Jigar,
    I transferred funds from my NRE account to Savings bank account in India. Also I opened few fix deposites from my savings bank account but the source of fund is NRE account.
    My question is: Can I transfer the principal amount back to my NRE account? Do I need to pay any tax? You blog says that there is no need to fill form 15CA and 15CB after October 1st. So How we can initiate this transfer?

    • If you transferred your funds from NRE account that is enough proof that the source of funds is from out of India as only those funds can be credited to the NRE account as per FEMA. You may not need to pay tax on the principal amount originally transferred from NRE account. However, you may have to pay tax on any additional income/gain amount. Most probably, TDS would have been deducted; you would need the certificate in Form 15CB and submit 15CA. You also need to determine if nature of transfer is included in the “Specified List”. If yes, then you may not need to furnish information or file 15CB/CA. Thanks.

  18. Hi
    My husband who is an NRI lost his mum, she has left him 60 lakh in her joint account in Indian Bank at chennai. We have a joint NRO account in Canara Bank in chennai. How can we reptriate the money to UK.
    Would be grateful for some advice as really struggling.
    Many Thanks

    • Any amount received as inheritance is not taxable in India. The money can be transferred by giving a copy of the death certificate. Unfortunately, inspite of CBDT circular of requiring CA certificate for only taxable transfer, you may need to furnish the information. Please coordinate with your bank and CA. Thanks.

  19. Hello Sir,
    i am NRI for the past 13 years, i have kept around Rs. 50 lakhs FD’s under my parents name, since they are senior citizens they enjoy extra 1% FD rates, these FD’s are there since 2005 or so, till now TDS was not imposed on FD’s as we are regularly giving Form 15H for my parents, currently i have transfered entire amount (principal and interest earned) to my NRO account, can i transfer complete amount to my NRE accouunt, i have NRO and NRE account in ICICI bank, same branch, your advise will be appreciated

    • 1. NRI can remit upto US $ 1 million per year out of the NRO account outside India, including transfer to NRE account. So, you can transfer the complete amount from your NRO to NRE account, subject to the rules and procedures are followed.
      2. For Income tax or any law, you and your father are two different person. you need to determine that transfer from your parents to you e.g. gift, loan, etc. FEMA has different rules and regulation for loan that is repatriable/non-repatriable.
      As I mentioned, while you can transfer the entire amount from NRO to NRE, I would recommend that you determine the nature of transfer, seek your CA’s advice, contact bank for the procedures, provide all info. as requested. Thanks.

  20. Hello,
    I recently moved to US in January 1, 2014 and submitted PF withdrawal form in India before my departure. I got my PF money today in my NRO account, how can i transfer it to my NRE account? As i understand the credit balances and interest earned on NRO account is subject to Income tax. OR can i transfer to my father as a gift to a normal savings account ? Will it have any tax implication on him or me?
    Looking forward to your response.
    Thanks in advance.

    • 1. You can transfer the funds from NRO to NRE. Please contact your bank. For more information, please check my 5 blogs related to NRO to NRE transfer (select category “NRO to NRE Transfer”) and 250+ comments. You will get your answer.
      2. As per US tax laws, you can give gift of $14000 per calender year to anyone, including your father without attracting gift tax. As per Indian tax laws, you can give gift of ANY amount to your father. Please understand gift tax and income tax of both countries. As a recipient of gift, your father can deposit in the normal saving account. While there may not be any tax on the transfer but any interest/income from the amount may be taxable for your father. Thanks.

  21. I am NRI and having own business in SA. I am director of one of Indian company and I am getting salary from that company which I deposit in my Indian Rupee Saving Bank Account (normal). I get salary from the company because I help company to execute some of its work here in SA, for which company earns nice revenues. Two Question: (1) Can I keep Saving Account being NRI. If I want to close this account and transfer this amount to NRE account whats a procedure. I dont have NRO account. Since Indian company has already deducted tax (192) from my salary do I need to pay any extra tax on that? (2) Can I remit this money from India to My business entity in SA as a loan/capital? whats a procedure?

    • 1. NRI can not keep resident saving account. You would just tell your bank that you are a NRI and your saving account will be converted into NRO account. Once funds in NRO, you may be able to transfer the funds to NRE. There is no extra tax for transfer. You can transfer the funds net of tax to NRE. You may have to complete the 15CB/15CA requirements.
      2. Once your funds are in NRE account, you can remit abroad to SA. No extra procedures required. Just initiate the wire transfer out of NRE to your SA account. Once funds in your SA bank account, you can give loan or invest as a capital or do whatever as per Indian laws. Please check the SA laws. Thanks.

  22. Dear Jigar,
    I had resident bank account in ICICI Bank, India before moving to US. I have been remitting US dollars into that Indian resident savings a/c legally between my banks at USA and in ICICI bank, India. Now my status has changed and I am US citizen. My most of the deposits in resident a/c are remittances of US Dollars. Those remitted Dollars is not my Income in India and TDS is being deducted as per rules.
    I have now opened a NRE a/c in HDFC Bank. My questions are:
    1) Can I transfer only those remitted US Dollars into my NRE a/c from resident a/c? What is the procedure or I can simply transfer them online into NRE a/c?
    2) How can I transfer entire amount including gain of interest etc. into NRE a/c? What is the current procedure?
    3) Since I have resident a/c in ICICI Bank, which bank would be more convenient for me, ICICI or HDFC in terms of transfer of fund to NRE a/c?
    Thanks & Regards

    • 1. Yes. you can transfer funds from NRO to NRE.
      2. If funds were in ICICI all along and FDs in ICICI and TDS deducted, you may be able to transfer the funds with just a request and a form. No need for 15CB/15CA.
      3. ICICI bank would be more convenient. Once in NRE account of ICICI bank, you can transfer to NRE account of HDFC bank or any other bank.
      Do post your comment once it is resolved and contact us if any problem. Thanks.

      • Dear Jigar,
        Thanks for prompt reply and advice. I am going to contact you for your services once NRE is opened at ICICI.
        My Indian resident a/c with ICICI has not yet been converted into NRO.
        What are your your suggestions/comments:
        1) As of now the TDS was deducted from my resident a/c applicable to Indian resident i.e. 10%. Do I need to pay extra taxes on the income as interest?
        2) Should I convert my resident savings a/c into NRO first and then open NRE at ICICI?
        Thanks & Regards

        • 1. You are required to file your income tax return if your income is more than 2,00,000. If it is less, it is recommended to file tax return as you would get the tax deducted refunded to you.
          2. I don’t think it matters. Just contact your ICICI bank relationship manager and he will do it. By the time you will be able to open NRE, your resident account would be NRO. It hardly takes a day or two. It is not converted but kept in the same form, just re-designated as NRO. You do not have to transfer but in the system and for you it would be now known as NRO instead of Resident account. While you would get checkbook with “NRO” written, you may still use your resident checkbook to withdraw from NRO. It is that simple.

          • Thank You Jigar & will contact you if required.

  23. Hello Jigar !
    Thanks for your advise on this site. I have been living outside India and have transferred amount to my NRE account and have a statement regarding the transfers. Subsequently, being a mandate holder, my father withdrew some amount and invested in chit funds. The chit funds are on my name.These amount would mature and finally would be put it into my NRO account. My questions are :
    1. Can I transfer this amount from NRO to NRE.
    2. For proof of source of Income, can I show the statement from the bank which I have used to transfer the amount.
    3. Is it better for my father to transfer it from my NRO account to his domestic account and do a wire transfer to my foreign account.
    I am looking for the best way for repatriating such funds. Please advise.

  24. Dear Sir,
    I am NRI with NRE and NRO accounts.
    My dad in India wants to gift me INR 40 Lakh.
    Can I transfer the money to NRO account and then transfer it to NRE account? Any tax that i need to pay?
    Thanks in anticipation,
    Kind regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) July 1, 2014 Reply

      There is no need to transfer gift to your NRO account. Your father, who is a resident in India, can give gift of 40L from his bank account to your account in foreign country. He just have to make a declaration to bank that it is a gift. That’s it. No need to transfer funds in your NRO and then complete the procedures for NRO to NRE transfer. Thanks.

      • Thanks Jigar, really appreciate your response.
        One small question, as you mentioned in your response above, what is meant by declaration to bank? what is to be done for that?
        Many thanks

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) July 6, 2014 Reply

          An application and/or signing a form informing a bank for the purpose of transfer. Usually, banks have a standard procedures/forms to be signed for remitting funds as a gift to relatives. Thanks.

  25. Dear Mr Jigar,
    Am a NRI, staying in Dubai. I Have NRO account maintained with an Indian Bank. The source of money is sale of Property (situated in India) around 20-25 years back and interest earned on it. Capital Gain taxes (as applicable) have been paid. The transaction went through bank accounts.
    Now have to transfer it to NRE account.
    All the documents of the transaction are lying in India. The amount at which transaction took place, & the amount currently lying now in the account, is not tallying as it all happened 25 years back.
    Do I have to pay any tax on it?
    Please guide…

    • If TDS on the interest for all the years have been property deducted, no additional tax is required to be paid. Thanks.

  26. Hello Jigar,
    I apologize in advance if this question has been answered before but here is my situation and I would like to seek your advice.
    1) I have funds transferred as US Citizen (USD-INR) to my Mother as Gift in India our last several years, which is in FD and any Interest earned has Taxes paid in full in India.
    2) Now I would like to get those funds in to my NRE Account back as Gift and here is my question :
    a) What is the best way to do this transactions ?
    b) What is limit’s for Transactions?
    Everything I have read so far tells me that I can have my Mom Gift me all the funds Original + Interest (INR) into my NRO account (INR) and then from NRO a/c I can transfer to my NRE Account ? (INR)
    Could you please confirm is this permissible by RBI Rules and if so what’s process and best way to handle this ?
    My end goal is keep funds in INR under my NRE A/c so it can be Reparable anytime and I can pay Taxes in US on Interest.
    Thank you
    R Shah

    • Gift to NRI close relative is limited to US$ 125,000 (limit increased from $75,000 to $125,000). The transfer can be made from your mother’s resident account to NRO account. Remittance of gift out of India is also allowed; so you may receive the funds in your US account from your mother’s resident account. Or you may also be able to convince your bank to credit your NRE account from your mother’s resident account. Good luck.

  27. Hi,
    I recently sold my flat and deposited whole of the amount to my NRO account. Now I would like to transfer the fund to my bank in USA. Can you please guide me how can I get this done.

    • If TDS had been deducted @ 20% on principal or on the gain, you can get the 15CB/15CA and transfer the funds to USA. If not, you would need to compute the tax on the sale of property, pay the tax, obtain form 15CB from a Chartered Accountant and file form 15CA online to the income tax department, submit all the documents to the bank (purchase deed, sale deed, request letter, 15CB/15CA) and then bank would remit the funds. Let us know if you want any help with the transfer. Thanks.

  28. Dear Mr Mehta,
    I’m an NRI holding an NRE account in India
    3 yrs back I transferred funds from my NRE account to my wife’s local account and now I want to transfer these funds back to my NRE account.
    Please advice on how I can transfer these funds.

    • 1. I am not sure who you are referring to but I will reply.
      2. Transfer to spouse has always been controversial in India as they both are separate person for income tax and FEMA.
      3. While you may convince the bank to transfer the funds into your NRE account. Bank may not do it and you may have to transfer the funds into your NRO and then NRO to NRE after providing documentation/certificate/information required by the bank. In short, either you convince them (bank) or they convince you. Thanks.

  29. Dear Jigar,
    I am an NRI with NRE and NRO accounts in India. I am working in India and drawing salary every month. I have accounts in HDFC and HSBC. My salary gets deposited into my NRO account. HSBC does not transfer my salary from my NRO to NRE account as they say salary is not allowed to be transferred as per RBI guidelines. Whereas, HDFC bank will transfer my salary from NRO to NRE by taking Form 15CA/CB. I use the transferred NRO-NRE funds for maintenance of my family abroad.
    Can you please advise why there is a discrepancy in the rules between HDFC and HSBC, when RBI as per their circular dated May 2012 it has confirmed that NRO to NRE transfer is allowed?

    • 1. As you are working in India, you are a resident as per FEMA in India and as a result, you are not allowed to keep NRO or NRE account but only resident savings account in India. The banks – HDFC or HSBC would have opened the NRO account before you started working or on your declaration that you are a NRI. You would also become a resident in India as per Income Tax act if you stay in India for 182+ days.
      2. RBI has authorized banks for ensuring FEMA provisions are complied with. It is the ban’s responsibility so different banks may have different requirements. However, unfortunately, the bank’s personnel may not be aware of the rules, regulation and requirements resulting in unnecessary requests for documentation/procedures that are not required and unpleasant experience or delays by NRIs. You may also ask them to show/tell you the RBI guideline that does not allow remittance abroad. I bet they would not be able to tell you.
      3. That being said, you should not be barred from transferring money abroad for maintenance of your family. It is only the procedures that you would need to follow and may differ between banks. Thanks.

  30. I read through previous comments and noticed that an Indian resident can gift to other person’s foreign currency account with just gift declaration to bank. Can you please comment whether following scenario is feasible and provide as an alternative to NRO to NRE transfer?
    1. I gift an X amount to my mother from my NRO account to her indian resident account.
    2. She then gifts the X amount to my UK account in GBP.
    Am I missing something? Thanks.

    • 1. Yes. RBI/FEMA allows an Indian close relative resident to remit funds outside India as a gift upto a limit.
      2. A gift is transfer of funds without consideration or expectation of getting it back. The scenario you mentioned is not a gift but is an arrangement to circumvent the law. Please note that RBI as well as the income tax department tracks the funds transfer and an immediate transfers may raise a flag.
      3. As a NRI, you are allowed and can easily remit up to an equivalent of US$ 1 million. I would recommend to it officially from your account. Thanks.

  31. Mr.Jigar
    I am working with partnership firm, with effect from FY 2013-14 one of partner retired from Partnership firm who is NRI from FY 2014-15 , now his capital is converted into loan.
    My question is
    1) Whether remitting to an NRI (former Partner) his capital in firm now consider as a loan requires certificate from CA ie 15CA/CB?
    2) He holds resident saving a/c , now which he is closing , proceeds of which will be transferred to NRO a/c mandate us to take form 15CA/CB ?

    • 1. The 15CB/15CA is required only for any payment that is a taxable transfer and that too, out of India.
      2. There is no requirement of 15CB/15CA for any domestic transfer i.e. transfer within India. So you may write a cheque in his name from the firm, which he can deposit where he has NRO account. Thanks.

  32. Dear Mr. Jigar
    I am a non resident. I have recently sold my property in India to my brother. I have an nre and nro account in India. I understand my brother who lives in India can only transfer the funds to my nro account. I want to transfer the funds outside India. When I spoke to the bank manager in India he says I can transfer the funds from nro to foreign currency after submitting an A2 form.
    Not sure what is the procedure.
    Thank you in advance for your advise.

    • Form A2 is a declaration. I would think as the payment is in the nature of sale of property and is taxable as capital gain, you would also require Form 15CB and 15CA. Actually, your brother should deduct TDS on the payment made to you for the purchase of property. Please contact your CA and follow up with your bank. Thanks.

  33. My parents want to send me some funds as a gift. It is less than $100K.
    Apart from getting the 15CB and 15CA forms, what else needs to be done.
    I am a US citizen with OCI card, Do I need a PAN card ?
    Thanks much

    • There is no need for 15CB/15CA for gift. Your parents just need to contact their bank and sign a declaration and the bank will transfer the funds. While foreign gifts are not axable in USA, you would need to disclose the gift received to IRS. Thanks.

  34. Dear Mr. Jigar Patel,
    I am NRI and OCI card holder. Before coming to US, I had some savings & amts deposited in PPF A/C. I made Bank FD’s from the savings and was filing IT Returns and also paid tax, if any, on the interest income from these sources.
    When matured in this Financial Year, we intend to credit the Bank’s FD proceedings and the permissible withdrawals from PPF A/C to our NRO a/c and would like to request the bank to transfer the principal amt from NRO to NRE a/c.
    If I can establish to the Bank source of funds by producing the FD receipts & PPF passbook (and or if the amts are deposited in the same Bank Whose FD’s are matured), to me it appears, to the extent of principal amounts not being income and such funds will not attract any tax liability, as per the new amended rule, even the procedure in Form 15CA & CB is not required for such transfer to NRE A/C.
    Is my understanding correct?
    I would appreciate your advice.
    With Best Regards,

    • In the perfect world, what you said would work. However, you may have to give a CA certificate (whether in Form 15CB or other) for the transfer from NRO to NRE. Please contact your bank to convince without CA certificate. If not, please contact your CA for the certificate. Thanks.

  35. Hello.
    I understand the NRE and FCNR accounts are both tax free in India. But how does the tax procedure work in USA? 1. Will I receive a 1040 end of each year for the interest earned on these accounts? 2. And then do I file it along with my yearly tax return? 3. Is the interest taxed as a 1099 or W2 earning?
    How does the interest acquired on NRE account gets calculated for tax filing? Say I deposited $10,000 in NRE account when the dollar rate was 60 rupees @ 10% yearly interest. And within the same year say the rupee depreciates or appreciates to 70 or 50. So that means for that year, I will be taxed on $857 or $1200 (interest converted to dollars)?
    sorry for the silly questions. Trying to determine if investing in NRE account is a good option.
    Thank you very much.

    • 1. Only foreign banks e.g. Citi will issue 1040. Indian private and nationalized banks do not issue 1099.
      2-3. You would ask Indian bank to provide a certificate for the interest on the deposits and report the interest in the Schedule related to income from interest in dividend.
      4. Interest on NRE would be in INR only. You would need to convert the total interest received during the year at an exchange rate on December 31 of that year, which is published by the US Treasury department.
      5. NRE FD is always a good option as you get 9% return. Even after assuming 4% INR depreciation, your USD return would be 5%, way more than meager 1% in the USA. Even after 30% tax, you would get 5 times your after tax return in the US.
      6. Let us know if you need help with NRE FD and liaison with bank for better exchange rate and higher FD rates. Thanks.

  36. I have one query hope you can give your views.
    I have few long term NRE FDs (10 yrs.) of significant amounts . As I plan to return India for good next year then my status will be changed to resident. As interest on these FDs is tax free as of now. once status is changed from Non resident to Resident , then interest on these NRE FDs will be taxable. In such a situation what is your opinion in order to save tax. Do I need to break these FDs prematurely and invest in mutual funds in order to save tax . What are options for me in such senario . What is your opinion.
    I was told that these NRE FDs can not continue to be as NRE FDs once status is changed from non resident to resident and interest earned on these FDs will be taxable. Kindly also confirm this information from your contacts as I am getting conflicting information on this issue.
    Dr. Saksena

    • 1. As per FEMA regulation, NRE accounts may not be continued on your permanent return to India and need to close. Any interest on NRE account would be exempt from tax.
      2. You have an option to transfer funds to your RFC account or your resident account. Any interest on RFC account would be exempt from tax provided your status is either Non Resident or Not Ordinary Resident. The interest on resident account would be taxable.
      3. If you have significant amounts, tax is a very important consideration. Please check our blog on Tax drag to understand effect of Tax on your investment in long term at http://nareshco.com/blog/?p=229.
      4. India have many investments that generate taxfree returns. However, planning and selection of options are crucial.
      5. I would suggest to seek professional advise from your CA or investment advisor or any other expert who knows FEMA, Income Tax as well as Investments before making decision about NRE FDs as it could materially affect your return. If interested, you may also contact us with your detailed situation and we will be happy to help. Thanks.

  37. Dear, Jigar,
    A friend of mine has some stocks that he bought 40 some years ago He is a an NRI. He has opened a pis account. If he sells the stocks, the money will be deposited in his NRO account. There is no tax for long term investment. Can this money be converted to NRE?

    • Yes. He can. Thanks.

  38. One of my friends withdrew some cash (<10 lakhs) from his HDFC NRE account a couple of weeks ago thinking it was needed for an emergency. But t so happens that it was/is not required. Would the bank allow the money to be deposited back to his NRE account?

    • I doubt it but you can try. If bank doesn’t allow, deposit it in NRO account and transfer from NRO to NRE.
      Please note that cash deposit of Rs. 10 lakhs+ in a bank account during the year is reported to the Income Tax department so while it does not exceed 10L now, make sure it does not exceed 10L during the whole year or be ready if Income tax department issues the notice. Thanks.

  39. Hai Sir,I am an NRI working in UAE.I want to transfer a little big amount to my brothers indian local bank account.Shall i need to pay tax for that and what maximum amount I can tranfer ?

    • Gift received from NRI brother is not taxable in India. You can transfer any amount. However, it is recommended to have a Gift deed/letter and your brothers need to communicate in the income tax return of the gift received. Thanks.

  40. Hai, I need help……..i having nre and nro a/c with icici bank. I invested some money into icici prudential life insurance from my nre a/c.Recently I closed that investment, unfortunately I submitted my nro a/c statement by mistake. What is the procedure for transfer my fund from nro to nre?
    Kindly help me

    • Please try to convince the bank to transfer the funds without 15CB/15CA. If not, contact your CA to issue 15CB/15CA to transfer the funds. Thanks.

  41. Hello.
    I am a resident of USA and had sent money to my sister a while back. That amount (50 lac rupees) is currently in my sister’s account (resident of India) and I am the beneficiary/nominee on that account.
    Now with the growing age, I am trying to determine how the money can go to my kids (residing in USA) after our demise (sister and me).
    Is any of the following an option:
    1. Make a living will to say that money go to my kids after the my sister’s and my demise?
    2. Open a NRO account under my name, ask my sister to transfer the amount to my account and then I add my kids as a nominee on my account.
    3. Can my sister gift me the money in US dollars (less than 100K) in one transaction? Will I be taxed on this gift amount? I will be loosing lot of money with this option though because earlier I got converted $ to 40 rupees…..but willing to consider this option if available.
    I appreciate your advice on this matter.
    Thank you,

    • All three options are available to you. Any foreign gift is not taxable in USA and any gift from close relative is not taxable in India. However, I would suggest you to contact your CA or advisor for the same. Thanks.

  42. Dear Jigar Bhai,
    When i went to my CA to get a 15 CB/CA he asked me for foreign amount. He and my bank could not comprehend a concept of transferring INR from NRO to NRE without currency conversion.
    When I look at the 15 CB and CA it asks for foreign currency and amount. Thus prima facie even income tax procedures also do not support INR transfer from NRO to NRE.
    Is this by accident or currency conversion is a must for NRO to NRE transfer?
    All I want to do is move the funds from NRO to NRE account and then from there in repatriable MFs ( to allow future ease of money movement).

    • There is no conversion required for NRO to NRE transfer. In your case (NRO to NRE transfer), foreign currency is also INR. Thanks.

  43. Dear Mr. jigar,
    My CA advised me that I need to be present in India at the time of initiating NRO to NRE transfer. Is this really true?

    • No. You don’t. Your signatures would be required on Form 15CA, which can be emailed to you and then you can email it to the bank. Thanks.

  44. Dear Mr. jigar,
    Few years ago i have transferred my 8 lacs from NRE account to Normal saving account (Not NRO). Is it possible now to transfer same 8lacs saving account to nre account ? Without paper work, straight way can i transfer it through netbank? Appreciate your advise

    • Your resident account needs to be redesignated as NRO. While you can try to convince your bank to transfer from NRO to NRE without 15CB/15CA, if they are not convinced, you would need to do all the paperwork. Thanks.

  45. Dear Sir,
    Please let me know whether there is any tax applicable on transfer of NRO to NRE account. There is no FD in NRo account . No interst income .

    • There is no tax on transfer. Tax is on the source of funds. If no interest, what is the source of principal or the amount that you want to transfer. Whether taxable or not. If not, why not; if yes, whether tax is paid. Please follow up with your bank and/or your CA for the transfer. Thanks.

  46. Till AY 2014-15, I was a resident Indian. But from 1st a April 2014 I am an NRI, all my resident sb and fdrs are now converted to nro, can I transfer funds from the nro accounts to nre

  47. Hi.
    Your website has been very helpful for guidance to NRIs. I had one query though. We are trying to do NRO TO NRE transfer and wanted to know what would be the COUNTRY TO WHICH REMITTANCE IS MADE. since the tranafer is INR TO INR, I think the country of remittance will be India though the remittee address is an overseas address. My CA feels it should be our overseas country and the bank branch has no clue. So I thought this would be tge best forum to ask this question. Request you to please reply , so we can proceed.
    Thanks and please keep up the good work.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) May 14, 2015 Reply

      You may use India and write a note that it is a NRO to NRE transfer. Thanks.

  48. Hello Mr. Patel,
    My father-in-law wants to gift his Indian Shares to my wife. She in turn would like these stocks cashed and money repatriated to the US. We are all US citizens living in the US. Father-in-law in US is handicapped now and cannot travel to India. Can you suggest the best way to get these transactions processed?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) July 5, 2015 Reply

      If all are USA, I would suggest to sell the shares in his name, pay tax, remit funds to USA and then gift, if required. Physical presence is not required. Let me know if you need any help. Thanks.

    if my friend transfers 8.5millon dollars from London bank to normal student account of andhra Pradesh in India.then how much will cut from my account in the form tax from income tax department in India.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) July 5, 2015 Reply

      I didn’t understand the student account. The bottom line, if you receive a gift from non-relative (your friend), it will be added to your income. If the money is received as charitable donation, you may also have to report to the donation received to the Charity commissioner and also comply with the FCRA regulations. Thanks.

  50. Sir im suresh.
    suppose i’ve received fund from uk and it tranferred to
    my accout but incomtax stoped. These all happened through online banking. My question is after paying money will they transfer the money. Because i already paid money for c.o.t now they r asking me for tax code money should i pay sir please reply me sooner

    • I do not understand your query. Please elaborate. If confidentiality is an issue, please email. Thanks.

  51. Hi,
    I have money in India ICICI savings account which was sent from US to India. Now I want to get the money back. I want to do it through State Bank of India (SBI) as they give a better rate. Can I do the following:
    1. Open an NRE/NRO in SBI
    2. Transfer money from ICICI savings to NRO in SBI
    3. Transfer from SBI NRO to SBI NRE
    4. Transfer from SBI NRE to my US bank account.
    Please let me know if this is possible.

    • As an NRI, you are not allowed to open/maintain resident account. You are required to inform your residential status to the bank, which in turn would re-designate your account as NRO. I suggest following:
      1. Convert your ICICI bank account to NRO
      2. Transfer ICICI NRO to SBI NRO
      3. Transfer SBI NRO to SBI NRE after CA certificate in form 15CB and filing form 15CA
      4. Transfer from SBI NRE to USA.
      I also hope you have been reporting you accounts and income in India to IRS and/or Department of Treasury in USA. Thanks.

      • Thanks for the reply. Yes, I have been reporting my accounts and income in India to US dept of treasury and vice versa as well.

  52. Dear Jigar,
    I am issuing Form 15CB to my client who is transferring funds from his nro to nre account. But he holds the nro account from 2001. Do I need to check the sources from 2001 as he is not willing to provide any details of 2001. The amount being transferred is accumulation from 2001. The client has not filed any returns in India. Please advice me how to go about issuing the certificate. Thanks in advance.

    • I would ask my client to provide documents to establish the source of funds to determine that any tax on the funds have been paid. If source of funds is accumulation from 2001 i.e. income thereafter, you would also need to confirm if tax on the income (TDS) has been paid. Thanks.

  53. Sir one of foreign person transferring money from. his a.c. to my a.c..there is a mail come from rbi that I will give expansion fees because my account is saving account,is it true.

    • Any funds from non-relative is included as income and is taxable. RBI does not charge exapansion fees because of saving account and money coming in (earning forign exchange) is always welcomed by RBI. Based on the query, I think this is nothing but fraud so please do not pay. You won’t see a penny and end up paying a lot of fees / expense. Thanks.

  54. plz mail me completely filled form of FORM 15CA & 15CB. Thanks in advance.

    • The 15CB/15CA would be for a particular client and due to confidentiality, I won’t be able to share it with you. However, please make a google search and You may find a copy. Thanks.

  55. Dear Jigar Patel,
    I need your suggestion on following situation .
    1.I’m selling my flat for 1.10 cr ,I have purchased it for 75 lakhs and I have spend around 12 lakhs for interiors , the total cost came to 87 lakhs for me .
    2.I have purchased it through Bank loan and I have cleared it this week , the total interest I paid in the last 3 years was roughly around 15 lakhs , can this interest be deducted on the total profit made over my flat when paying my taxes ?
    3. I’m trying to repatriate the total amount to my A/c in USA , I have NRE account in HDFC and NRO in ICICI bank , does it matter from which bank I initiate the transfer to My US bank in term of exchange rate ? ( I’m trying to repatriate 60 lakhs )
    Please kindly help me in providing the suggestion for above questions.

    • 1. Cost of interiors/furniture would not increase your cost of flat. You may sell them separately and report gain/loss on the assets.
      2. Interest on bank loan would not increase your cost. You can claim the interest paid as deduction from your income in income tax in India.
      3. Money can be repatriated from both NRO and NRE. The sale proceeds would be credited to NRO account. You can either transfer the funds to NRE or to USA. For both, you would need CA certificate in Form 15CB and efile form 15CA. Thanks.

  56. Dear Jigar Patel,
    I had opened a 3 year RD in one of the co-operative bank in India 2.7 years ago. I am in USA for last 4 years on H1 visa. I am now planning to cancel this RD and transfer entire amount to NRE fixed deposit with the same bank but this co-op bank only has NRE account and no NRO. I do have NRE/NRO acocunt with citibank. Can I transfer my local RD amount to my Citibank NRO account and then transfer this money from NRO to NRE fixed depoist back with my co-operative bank?
    Also do I need to pay tax for this local RD account even thought the monthly deposits were made from my NRE account?
    Kindly advice.

    • When you tell your bank that your residential status is “Non-Resident”, they will re-designate your current savings account to NRO account. You may have same account number and also use same cheque book. I am surprised that the bank says there is no NRO.
      Anyway, I think you will be able to transfer funds to Citibank NRO account. Once funds in NRO (in co-op bank or citibank), you would need a CA certificate in form 15CB and file form 15CA and then you will be able to transfer funds to NRE account. Thanks.

  57. Dear Jigar,
    I am an NRE living in UAE and around 2.5 years back paid a builder around 40 lacs for a flat in Mumbai through my HSBC NRE account to his bank account. The construction has still not started and he has given me the option to return my money.
    Now my question is how can i have this money (40 lacs) repatriated back to my same NRE account?
    Also he may possibly give me a higher amount for using my money for 2.5 years.
    How should that money be treated/transferred and what are the tax implications, if any?
    Sorry for diverging from the main topic of transfer from NRO to NRE.

    • Please obtain a letter from the builder for return of the booking amount. The 40L you paid out of NRE can be credited directly in the NRE account. If the builder is paying any additional amount as interest, it would be considered as your income and can also be credited to NRE provided tax is deducted/paid. You may need a CA certificate for the same. Thanks.

  58. Hi Jigar,
    I am NRI and having a NRE/NRO accounts. I have recently paid an amt from NRE account for purchasing land in India. This transaction did not go through and I have got back the money back into my NRO account. Now I would like to transfer this money back into NRE.
    My queries are:
    1. Do I need to submit F15CA/CB forms/
    2. Do I need any other documents apart from the above to show that I haven’t earned anything out of this transaction for which I need to pay any taxes?
    4. Do I need to be in person to submit these forms? Is it ok if any one else submit these forms/documents on my behalf?

    • 1. If the transaction of purchase of property did not go through and you had paid to the developer or the buyer, you can directly credit the funds into the NRE account. I would suggest, if possible, to refund from NRO and then get another cheque, a letter/certificate that it was related to cancellation and that the payment was from NRE and then convince your bank to credit into NRE. If not, try to convince the bank that it was paid out of NRE and is related to cancellation of deal to transfer without 15CA/CB. If not, 15CB/15CA would be required.
      2. If the amount you paid is the same as amount you received, there is no income/interest earned. Ofcourse, a letter from builder/developer helps.
      3. No, your CA should be able to do that. You would need to sign the form 15CA, which you can send to your CA/bank for the transfer. Thanks.

  59. Our son has a NRE ac in HDFC BANK. He also holds a savings account in ICICI BANK from which he is regularly paying for his LIC Pension plan on monthly basis. Can he give a standing instruction to HDFC Bank to send the premium amount every month to ICICI savings account?

    • I would think so. Please check with LIC and ICICI bank. Thanks.

  60. I am an OCI and I have invested my NRE funds in LIC Policies . Now Insurance Company has sent a cheque towards Insurance proceeds and I deposited the check in my NRE a/c. LIC has given a certificate that source of fund is from my NRE and requested the Bank to credit the proceeds to my NRE a/c. Policy has been issued with NRE clause. But my Bankers are insisting to submit 15 ca/cb. Is it necessary. ?

    • Now, it will be as the requirement is that any payment (whether taxable or not) to NRI would require 15CB/15CA. Thanks.

  61. Dear Mr. Patel,
    I have gone through your blog & it is extremely helpful. I would be very grateful if you could give me some suggestion.
    I have been living abroad since Sept 2005. I have a normal resident SBI account, with my father as the second holder. I sent money from my scholarship salary into this account. I do not have any NRE/NRO account. I have now approx. 40,00,000 Rupees in this account (including fixed deposits). SBI deducts 10% tax on interest earned. I have never filed tax return as well.
    I have now started organizing things. I have also recently received a letter from income tax dept to file tax return.
    1. I need to make NRE ACCOUNT & convert my domestic account to NRO. Does it draw any penalty that I do it late?
    2. For preparation of Form 15CB by CA, how is tax calculated? All money in my account is from source abroad and already taxed in that country. Interest has been taxed at 10% by SBI & I have never claimed tax refund (for amount below 200000 slab). Is my tax situation fine or there is pending tax?
    3. Should I file income tax after completing these formalities? My only income in India is from fixed deposits in this account (no shares, rent etc.).
    Your reply & any further suggestion will be of great help.
    Regards, Dutta

    • What you are doing is wrong as you are not allowed to have a resident account. Also, he TDS on NRO account is 30.9% so by keeping funds in resident account, you are only allowing bank to withhold 10%.
      1. I don’t think there is any penalty for converting to NRO. Better late than never.
      2. If you have about 40L, even 9% interest would be more than 3 lakhs. If you haven’t filed any tax return, the TDS should be 30.9% on interest. If you have filed a tax return, you would have claimed the refund and your status would be okay. You can still file last years tax returns. If your income is not much, there won’t be any additional tax payment but only refund.
      3. My suggestion would be to change your accounts to NRO first, file last 2 years of tax returns as NRI and then contact CA for certificate and transfer funds to NRE. Thanks.

  62. Dear Mr. Patel
    Yesterday by mistake I transferred my NRE account funds from ICICI bank to NRO account in HDFC bank. What I wanted was to transfer to HDFC NRE account.
    How can I get this transferred back to NRE account.

    • Please try to convince the bank to transfer to NRE. If not, you would need to provide 15CB/15CA. Thanks.

  63. Dear Jigar,
    A very helpful blog and I intend to keep it in my favorites from now.
    I am going to move abroad in another few months. I would like to request your suggest regarding the below doubt.
    I know that after declaring to the bank that I am an NRI, my current savings account will be re-designated to NRO account. An NRO account attracts an upfront 30% tax. But till date, the amount accumulated in my savings account and FDs are as an Indian resident and hence tax has been paid all through.
    I am in doubt after the bank converts my resident account to NRO account, how the bank will treat my existing FDs for tax (FDs which were initiated in previous years with Indian income). Will the bank apply a 30% tax on the amount that was in the savings account before I declare that I am an NRI ?

    • No. Only after you become an NRI and change your status in the bank, the TDS is being deducted at 30.9%. Until then, bank does not know and would assume that your status is still a resident. With requirement of mentioning passport number in the income tax return, now, it would be very difficult to hide your correct status. Thanks.

  64. Mr. Jigar Patel,
    I am very impressed with your replies in the blog. I need your help to fix my problem.
    My issue is: I have transferred about US$100K in few intervals in last 6 months in my SBI NRO account from the USA. This fund is required for a payment of buying a flat in Kolkata. Since flat is not ready yet, I have invested 55 Lakh in NRO fixed deposit with 6.5% interest for 90 days. I just came to know that money earned outside of India should NOT be deposited in NRO account, it must be deposited in NRE account. Now,
    1) Please advise how to fix this.
    2) Do I have to pay any tax in India for the money earned in the USA and transferred in NRO Account?
    Thanks for your help.
    Arvind Burman

    • 1. Funds from abroad can be deposited in NRE or NRO account. While I would not recommend transferring funds to NRO, It is okay. you can invest from NRO account or if you want to invest from NRE account. Please contact your bank to transfer funds to NRE account. There is no tax in India on any income earned outside India by NRIs. Thanks.

    • Dear Sir,
      I am very much impressed by the efforts you are taking to sort out the queries of the readers of your blog very regularly.
      My relative is staying in USA for last over 30 years. Her father expired about 3 years back. Now as a matter of family arrangement by way of distribution of her share in the property left behind by her father, her sister wants to deposit some amount in her NRO account which eventually will be repatriated to USA..
      My queries are
      1)What is the procedure to be followed?
      2)Does it involve any tax to be paid in India?
      Awaiting your Expert opinion.

      • 1. She would need a CA certificate in form 15 CB and file form 15CA to remit the funds to the USA. Please consult your CA.
        2. Inheritance is not taxable in India. Also, foreign gifts are not taxable in USA; however, she would need to submit a form to IRS declaring foreign gift/inheritance. Thanks.

  65. Dear Sir,
    In case of transfer of amount from NRO account of an NRI to her bank account in USA the remitter and remittee is the same person.
    In this case if she i.e. NRI has no PAN,how can Form 15CA be filled and filed by her?
    Please guide me.

    • PAN is required for NRO to NRE transfer or remitting funds outside India. If no PAN, I suggest, you obtain PAN first. Thanks.

  66. Hello Mr. Jigar,
    I’m a Canadian Citizen with OCI card living in Canada. I have NRE and NRO accounts in ICICI bank in India. My dad has invested Rs. 2.5 lakh for a LIC policy whose maturity on my Son’s 18 years of age will be Rs. 15 lakhs. I want to use this money for my son’s education in Canada. How can I get the money in Canadian dollars to my bank account in Canada? Also I have invested in a Pension scheme plan of LIC. How can i withdraw the monthly pension in Canadian dollars to my Canadian bank account? Appreciate your advise and help.

    • I would think the money will be credited in the NRO account. You would need to contact your CA to issue a CA certificate in form 15CB and file 15CA and then submit both to the bank and provide any other documents as per bank’s requirement to transfer funds to NRE or your Canadian bank. Thanks.

  67. Dear sir,
    My daughter is a canadian citizen of indian origin having NRO fixed deposits in a bank here in India. Kindly in form 1)what is the rate of TDS if she does not submit Tax residency certificate.
    2)whether such deducted TDS be claimed as refund by filing return if the total income for the whole financial year is with in the threshold limits of income tax ie less than 2,50,000.
    Thanks and Regards

    • 1. If not TRC, TDS would be deducted at 30.9%
      2. Yes, she can file tax and claim the refund of tax. Thanks.

  68. Dear Mr. Patel
    Thank you for posting the information related to funds transfer from NRO to NRE accounts. Just a quick question – if the FD (in India) is from inheritance from property sale, can I still transfer the funds to NRE account?
    Your response would be much appreciated.
    Kind Regards
    Natasha Saxena

    • Yes, you can provided you have paid the tax on sale of property and interest on FD. You would need a CA certificate in form 15CB and file form 15CA to the IT department for the same. Thanks.

  69. I paid 2 advance installment cheques to a builder from my NRE account. The project did not progress further due to some clearance issue. I requested the builder to return my money which he did by giving 2 cheques , 1 for same principal amount and another for interest by deducting TDS. I deposited that amount in my NRO account.
    Can i transfer this money back to my NRE account. What formalities do i need to complete. Any tax implications?

    • 1. Yes. The principal money could directly be deposited in the NRE account. For interest, a CA certificate in form 15CB and filing of 15CA would be required.
      2. The tax is only on the income i.e. interest and is already deducted by the builder as TDS. Thanks.

  70. Hello,
    I have an inquiry regarding my NRO deposits.
    I had a Resident Indian Saving Bank account. I moved out of country (Finland) for higher education purpose. I pay 3o% tax on my salary in Finland. I transferred my foreign savings (in rupees) directly to my Indian SB account. I also opened two deposit accounts with same bank in India (Online). So, I started earning interest on my deposits. Later on I realized that its mandatory to convert my SB account to NRO as I am depositing the money that earned abroad. Now, do I need to pay tax on my savings in India again? (India-Finalnd has signed the double taxation avoidance agreement). If not, Am I supposed to pay tax on the interests that I earned on my deposits? Can I “convert” my NRO account NRE? Thank you in advance.

    • There is no tax on savings as you have already paid in Finland. However, you would need to pay tax on the interest income on FD made out of your savings. Also, if you transfer funds from NRO to NRE, you would not have to pay tax at all as the interest on NRE account is exempt from tax in India. However, you may need to pay tax as per tax provisions of Finland. Thanks.

      • Thanks for clearing my doubts about NRE/NRO accounts. Now, what will happen to my NRE account when I return to India? Can I still hold my NRE account in India?

        • On your return to India, you need to close the NRE account. The funds in NRE can be transferred to RFC (Resident Foreign Currency) account, if you want to keep money in USD or your local resident account. Thanks.

  71. Hello Sir,
    I am in a dilemma at this moment regarding my PF and SuperAnnuation Funds. I have been living in US from 2009 and have an AXIS Bank & IDBI Bank NRE/NRO account back in India. I recently resigned from my Indian HQ-ed company to move to a US HQ-ed company, I was provided an option to withdraw my PF. I provided a cancelled cheque from my NRE account which I jointly hold with my wife (who is also an NRI), however I was told that I would need “For PF withdrawal Cancelled Cheque of your own active Indian bank account (Joint Account with Spouse only & No NRE Account) required.” I do not understand how I can have a Indian Savings account if I am an NRI and in that case, how will I receive my PF amount.
    Request your expert advice here. Thanks in advance !!

    • Direct credit to NRE account is restricted. I would advise you to can give cancelled cheque of NRO account. Thanks.

  72. Hello Sir
    Many thanks for all your support in this forum by answering the questions. I have below question.
    If I am an NRI and I have some NRO FD in India (say around 5 lac rupees). The source of funds for the principal of FD was the money earned in India while I was resident Indian. Assume FD is giving interest @ 8%. Then can the yearly interest of Rs. 40000 be credited to NRE account after paying the applicable taxes?

    • Yes. However, you would need a CA certificate in form 15CB and submit form 15CA to the IT department for every transfer. Instead, I would suggest you to transfer all funds to NRE after these procedures and invest in FD from NRE only. Thanks.

  73. Dear Jigar
    Very useful information Thanks
    But my question remains
    I loaned 5 lacs rupees from my nre acoount to my brother thru bank transfers, now after 2 years he want to retrun that amount. Can he transfer money directly back to my nre account or he will need provide some certificate.

    • Yes. Loan can be given to close relative on repatriable basis for his business purpose for 1-3 years duration without interest. So, you may be able to credit the amount directly to NRE account. However, it would be difficult to convince the bank :). Thanks.

  74. Hi Jigar,
    First of all thanks for taking the time to answer so many queries from people like me. I wish to receive tax advice for my situation. I am an NRI and am currently living in UAE. I am going to sell my property in India and after taking indexation into consideration, I will not have any capital gains liability (there will be loss instead). Do I still need to prepare a Capital Gains Tax statement from a CA and submit as part of my IT return?
    Also I will be receiving the money from the property sale in my NRO account. I wish to transfer the money from my NRO account to NRE account so that later I can reptriate the money to UAE. Please let me know how I can receive expert help from a CA for preparing capital gains tax statement and Form 15CB.

    • 1. Yes.
      2. Please contact your CA. He will help you. Please also inquire about TDS on sale of property by NRI and contact your buyer if TDS to be deducted. Please also contact your bank to understand the process for transfer from NRO to NRE. Thanks.

  75. Can I transfer money from my nre account to my friend nre account on line

    • Yes, however, the nature of transfer needs to be determined, whether income, gift, loan, etc. Thanks.

  76. Hello Jigar, I must thank you for this fantastic post. I however have few questions about the specificity of this matter:
    – You mention the “Specified List” several times. What exactly does this list contain? Is it possible to get the transfer methods from this list?
    – I am going to transfer funds from NRE to NRO pretty soon and withdraw it as cash. I will then deposit this cash into NRO (say after 5 years) and then want to transfer this to NRE. Is this possible and is there any official way to make NRE to NRO transfer so that when I want to make the reverse transfer, I can clearly document that the original source of the funds was indeed an NRE account.
    – In past I withdrew cash from NRE account by writing a check to myself. Is it possible to deposit that cash again in NRE?
    Thanks in advance for your reply.

    • 1. The specified list keep on changing and is provided in the respective notification. I have provided link of the notification in my blog.
      2. I am not sure what is your objective or not clear what you want to do.
      3. I don’t think so. You would need 15CB/15CA for the same. Thanks.

  77. Hi Jigar,
    I am in UK for 3 years now and unaware of the fact that I should have NRE / NRO account instead of a domestic one, I have been remiting money to India in my own domestic account since I left India. Now, after reading the rules, I know the first thing is to open an NRE account and redesignate my existing domestic account (saving/FD) to NRO.
    But I have a few questions in this regard and it will be great if you can help me with the answers –
    1. If later I want to transfer all my funds from NRO to NRE, will i b eligible for the CA certificate as the source of my funds in NRO is not actually India but my taxed salary abroad. Note that I have all tax documents and remit documents and also I have filed Indian tax returns as well during this time for tax regunds of TDS deducted
    2. If not, in what other way will I be able to expatriate this NRO money abroad as its a significant amount and I ll need it
    Awaiting your response.

    • 1. Yes, you would be able to transfer funds from NRO to NRE after CA certificate in form 15CB and filing for 15CA.
      2. Please contact us if you have any other question or want us to help you in transferring funds from NRO to NRE. Thanks.

      • My son is an NRI. He has a property in delhi from where he receives monthly rental on which TDS is deducted monthly. Any addl tax reqd to be paid as per his yearly income in India is also deposited as advance tax and IT returns are filed regularly as per IT Act. The rent is deposited by the tenant (A Bank) in his NRO savings account. All his savings are in NRO account with full taxes paid uptodate. As per budget guidelines, can the tax paid funds from his NRO account be transferred to his NRE account in India without filling form 15ca & cb.

        • 1. I would assume TDS @ 30.9% is being deducted on rent as your son is an NRI.
          2. I would think rent is a taxable transaction so 15CB/15CA would be allowed. However, please check with your bank and understand the revised requirements and procedures effective from April 1, 2016. Thanks.

  78. Hello, I’m living in U.S for almost 1.5 years now (Current Status Non-Resident). I have savings account in India with HDFC and I’m transferring money from here to Savings account.. Is there any tax implication on Savings account in India. I’m paying taxes over here in U.S for the Income I’m earning. Also tell me can I open separate NRE account in India without touching the Regular Savings account (HDFC) because this account is linked with home loan and Demat. Thanks

    • In any bank, after implementation of UCIC (Unique Customer ID Code), only one residential status would be allowed. Until then, you account would be frozen or kept on hold. You won’t be able to maintain resident account and NRE account at the same time. I would advise you to inform bank of your residential status and change the saving account to NRO and Demat to NRO-Demat and open NRO-PIS account as NRIs are allowed to invest in equity market only under PIS – Portfolio Investment Scheme of RBI. Thanks.

      • Thanks Jigar. Is there any tax implication on Savings account in India if I’m transferring money from here ?

        • As mentioned, you are not allowed to maintain a savings account in India but convert to NRO savings account. There is no tax on transfer of funds. Tax is on income generated from the money transferred (e.g. interest). Thanks.

  79. Hello,
    I am working in the UK and want to transfer some money to India. I would like to loan the money to my family friend for their business. In the future, however, I may want to bring the money back to the UK (when I want to buy a house, let’s say). What is the best way to do this?

    • This would be considered as loan on non-repatriable basis and certain conditions such as term of loan, rate of interest, use of funds, etc. are to be complied with. Thanks.

        • You may do it provided you follow FEMA rules. Thanks.

  80. Dear Jigar,
    recentely my husband got nri status . now we want to open nre a/c as well as current saving bank convert into nro a/c.but my query is this that the funds which are lying in normal sb a/c which comes from gratuity settelment and pf withdrawl can be transferred to nre a/c on the basis of 15ca & cb once the account re-designated as nro a/c .
    thanks in advance

    • Yes. Thanks.

  81. Dear Jigar,
    I had given a loan on interest through my NRE account and now the same has been returned back and deposited in the NRO account. Tax on the interest has been paid for all the years. if it possible to transfer the funds from NRO to NRE account. If yes, what is the process.
    Thanks in advance.

    • Yes, Please contact your bank and understand the process and then contact your CA and get the forms completed as requested by the bank. Please check my latest blog on the updated procedures from April 1, 2016 at http://nareshco.com/blog/?p=1387. Thanks.

  82. Hi,
    Request you to please clarify on below query. The internet is filled with info on how to tackle the below two scenarios for people who become NRI.
    1.) Existing stock holding – close resident DMAT account, open a new NRO DMAT account under non PINS scheme, and then transfer from closed resident DMAT to new NRO DMAR
    2.)New stock holding after becoming NRI – Open dmat, trading and nre account under PINS
    My questions is what to do with the holdings in PIS once i come back to India and go through the status of RNOR–>ROR–>OR.
    Can you please shed some light on this. I just don’t to go through the hassles of having TDS and then applying for refund if i sell my stocks in PIS.
    What should we do with PIS on returning back. Can it be converted to resident dmat and trading account ? Or do we again need to open a new resident trading and DMAT and transfer from PIS? Are there any tax implications?

    • 1. Long term capital gain is exempt in India so there is no TDS if you are selling after 1 year.
      2. It is your responsibility to comply with Indian laws, which require converting your stock holdings to NRO-PIS as NRIs are allowed to invest in Indian equities only under PIS-Portfolio Investment Scheme of RBI. Once you are RNOR or OR, you can tranfer/convert to resident Demat account.
      3. Whether you can transfer or need to new open accounts would depend on the internal requirements and procedures of your DP. There is no tax implications as tax will apply only when you sell. Thanks.

  83. Hi Jigar,
    Thanks for the wonderful blog, very informative. Even reading the comments and your answers provide a lot of information.
    My query is that I have a NRE account through which I have booked some tickets and hotels in India. On cancellation of the bookings, will I be getting money to my NRE account?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) May 17, 2016 Reply

      If you have paid from a card, the credit may be direct. I don’t think you may be able to deposit the cheque in NRE account. However, you may transfer the funds to NRE only by submitting 15CA. Please contact your bank and explain the situation. Thanks.

  84. Hi Jigar,
    As per CBDT notification no. 93/2015 dated 16th December 2015, no documents required for transferiing money form NRO to NRE account if it is made under some purpose code mentioned.
    Here is the details :
    Can you please clarify that if I can transfer the amount under the purpose code Purpose code S1301?
    Waht if i transfer the money for the above purpose and dont remit it to overseas for any reason.
    Can you please throw some light on it?

    • We have the updated blog on the subject as well which require no 15CB/15CA for any non-taxable transfers. However, the source of funds is also important. As bank can not determine the taxability of funds in NRO account and whether tax, if any, has been paid, they would insist on CA certificate. Also, S1301 is for family maintenance and if you are keeping your money in NRE (not transferring to your family), how can you claim it is for family maintanance? Please note you need to use the right code and not the most favorable code. Please contact your bank and your CA. Thanks.

  85. Hello Mr. Jigar,
    In order to transfer funds from NRO to NRE account, is it mandatory that one has BOTH accounts already operational prior to making the transfer. In other words, we don’t have an NRE account, only have an NRO account, in that case are we allowed to open an NRE account simply for the purpose transferring funds from the NRO account.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) July 4, 2016 Reply

      For NRO to NRE transfer, I would think both account should be operative. If NRE is not operative, funds can not be transferred i.e. credited in the account. Opening NRE account is not mandatory as you can transfer funds from your NRO account to your foreign account too. Thanks.

  86. hi I had loaned some money to my friend & now he has returned it there was no interest involved . now the same money is deposited onto my wifes NRO Account can I move this to my wife’s NRE Account ? if yes how
    Source of Fund : I can prove my transfers from UK to india

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) July 7, 2016 Reply

      I doubt that as the source of funds in your wife’s account is transfer from your friend. If the money were in your account, it would be easier. However, contact your bank and understand the procedures. Thanks.

  87. I was working in qatar and now took a transfer to mumbai.
    I hv FD in SBI which i saved through my NRE account.
    Now i wana tfr my account from NRE to savings.. where i can operate indian currency s/account. What wl happen to my FS’s. After tfr. And any procuder for tfr from NRE TO SAVINGS.AC

    • As you have moved to India (taking an employment in India), you are a resident under FEMA and are not allowed to keep NRE account. The interest on FD would be taxable on your return. Just inform the bank of your change of status and they will convert your account from NRO to resident. Also, you would have an option to transfer funds from your NRE account to a resident account or to a RFC- Resident Foreign Currency account. Interest on RFC account is not taxable as long as your residential status is “Not Ordinary Resident” under Income Tax Act. Thanks.

  88. Question regarding “Source of funds” for NRO to NRE transfer:
    – I have a certain sum in NRO account for more than 4 years. There is no credit to this account, other than interest on FDs.
    – How far in to the past the CA will go in to find out the exact source of funds. I may not have full details of some deposits made 5-7 years ago.

    • It would depend on the CA. While you may not have full details, but you will have the bank statements. You may request the bank to provide your old statements and ascertain the source. Thanks.

  89. Hi Jigar,
    After reading your blog, I have converted my saving accont to NRO account as my resident status is NRI.
    However I have few question regarding this:
    1. When I had saving accont with the bank, they created some MOD’s. What would happen to those MOD accounts.
    2.I checked with bank and they told that they cannot convert it until its maturity.Is it correct?
    3.If second statement holds good,then bank should auromatically convert those MODs to NRO mod’s after maturity, as I have already informed them regarding my status change?
    Can you please provide your expert advise on above points?

    • What is a MOD account?
      Your responsibility is to update your residential status to bank. Then it is the bank’s responsibility to comply with RBI/FEMA laws. Thanks.

  90. Sir, i have reieved money (12 lacks) as loan against my lic policy and i have to transfer this money from my nro a/c to my nre a/c (bank of baroda) to my nairobi a/c for construction of my house there. So what is the process and do i need to fill form 15 ca and 15 cb. also what will be the rate of TDS? Can you please help me.

    • As per FEMA laws, loan amount can not be transferred to NRE/out of India without prior approval of RBI. Thanks.

  91. Hi, I have a house India which I purchased through a leading bank’s loan. Immediately after an year I moved abroad and started paying my EMI and did some partial foreclosure through my NRE account. Now the house is 10 years old and I still have few lakhs outstanding. Meanwhile I have rented out my house for the last 3 years and made changes in such a way my emi goes from my NRO (not from NRE) account in which the rents are getting deposited. Given the situation if I sell my house tomorrow how can I repatriate the funds to NRE or to my foreign bank? How much tax will I have to pay if applicable.

    • The tax needs to be calculated. Any money paid out of NRO can be credited directly to NRE. All other payment will go to NRO and after payment of tax and CA certificate, you can transfer the funds to NRE or to your foreign bank. Thanks.

  92. Am keeping some FDs in PNB for last few years. I have transferred the amount from my NRE to NRO for FD booking as the manager suggested to do so at that time. I can see bank is charging TDS on my FD interest now and I would like to close the FDs in bank and planning to transfer all amounts to NRE account in PNB or any other banks. Please help me with the process. As per the conversation with HDFC bank they have suggested that I can do same with NRE undertaking letter and FEMA declaration annexure. Please assist

    • 1. Yes, you can transfer the funds from NRO to NRE.
      2. The procedures would depend on the bank. I don’t think HDFC has such simple procedure. Usually they require 15CB/15CA. You need to follow procedures required where you have NRE account. Thanks.

  93. Hi
    I was told by HDFC bank that a 30% tax will be deducted when transferring funds from NRO to NRE account. I was told that this was some sort of an exit tax since the money may be repatriated outside of India. Is it true ? I do not see any reference anywhere related to a 30% tax on transferred amount.

    • Tax is always on the income (Interest) and not on principal. Please note that there is NO tax on transfer from NRO to NRE but you need to prove that the tax on the amount that you are transferring is after tax money. e.g. principal is from your savings after tax and you have paid any tax on the interest. I am surprised that you still get this from a bank like HDFC even after 2-3 years. Thanks.

  94. Hi Jigar,
    I would like to know incase I sell a house in India and get money in cash, can I deposit that money in NRO and transfer it to NRE without paying any tax. What would be the cash limit I could deposit and transfer without paying tax. Is there any way out?
    Assume 50 lakhs.

    • Cash payment for sale of property is not allowed. I would assume it is the part of consideration that you do not want to disclose to the IT authorities. As you have not paid tax in India, you would not be able to remit the funds out of India. Also, IT department tracks cash deposited in the saavings bank so an Inquiry may come. I would not recommend to deposit the cash in bank. Instead, I would recommend to officially report the cash as sale proceeds and pay tax and remit funds out of India or to NRE account. Thanks.

  95. Dear Jigar,
    i am an NRI i have an account in syndicate bank as savings deposits, recently i was opened as NRO account but i have a doubt is there any taxes applicable during transaction time in India please help me.

    • The tax is only on the income. So if you have an interest income on the NRO balance, TDS would apply. NO TDS if no income. Thanks.

  96. My Husband shifted to Gulf country for job in Dec 2006
    • My self is having NRI status from 2008 as I got shifted to Gulf as depended (housewife)in March 2007.
    • Then onward my Husband and Myself (Joint ) has open NRO and NRE account in 2007 (Joint account) in indian Bank -SBI and started transferring fund to india in NRE account.
    • As in year 2007 , the Indian bank is having less than 4% interest rate in NRE account , However NRO account is having average 9% interest rate for the FD’s.
    • So, Many NRI’s use to transfer fund from NRE to NRO and book FD’s and pay IT as per regulation.
    • We have also transfer fund from NRE to NRO and booked multiple FD’s on joint name (self /husband as joint holder Or my husband name /mine as joint holder)on to earn high interest rate and pay IT as per regulation.
    • However in year 2012 the interest rate on NRE was also increased by RBI (around 9 %)and As per RBI guideline/scheme of May 2012 to allow transferring of fund from NRO amount back to NRE amount and book FD in NRE account below prescribe limit.
    • So in year 2013, we have prematurely break the all NRO FD and transfer fund back to NRE account (about 65 lakh) by fulfilling the 15 CA and 15CB certification from CA and then after rebook the FD in NRE with Joint account holder( my husband name /mine as joint holder)
    • Also, In year 2013, we have sold the our flat (joint holder) in Surat (@8.5 lakh) which was purchased in 2003 and Now rebook new flat in Mumbai (joint name).
    • Total Flat sold amount in half was shown while filling the return in both (myself and my husband ITR).
    One Mistake is our CA has shown my status as Resident Indian and my husband status as NRI while filling the return , However my bank status is NRI from 2008.
    • Now we have got letter from IT office to report as they have query related to ITR 2014 (13-14) on subject So Kindly guide us how to come out from the above issue and explain how and what to represent.

    • You would need to understand the query. I don’t think residential status would generate a query. The query would be for either NRO to NRE transfer or reporting of capital gain. Please contact your CA and understand. If you have truthfully reported all your income and paid the tax, you do not need to worry. Thanks.

  97. Mr.Jigar
    Can I transfer my money from my NRE HDFC account to NRE SBI account? and vise versa?

    • Yes. It is allowed.

  98. Dear Sir,
    I am NRI working in UAE who took a personal loan from a local bank here to purchase property in India. Due to work environment conditions, I am taking a loan against property in India to close the personal loan in the UAE bank. Can a Indian Bank buyout a personal Loan in UAE. What are the procedures, implications ?
    Thank you

    • Loan funds can not be remitted abroad. Thanks.

  99. Hi Jigar,
    I am having a NRE and NRO account with Kodak Mahindra Bank, I had withdrawn a large amount of money from my NRE account in cash to loan to purchase an property, unfortunately tracsaction could not take a place.
    Can I deposited the cash amount to the NRO account ?? IS there any tax or issue from RBI side.

    • Yes, you can. However, any credit of 10L+ in savings account is being tracked by the Income tax department and you may get a notice so better to be prepared. If you have genuine requirement, it would be okay. Thanks.

  100. Sir,
    I transferred 17 lakhs to my cousin from my SBI NRE account through online transaction in october. He has returned the money few days before but all in 1000 rupee currency. Can i deposit this amount back to the NRO / NRE account and whether it will be taxable.
    Appreciate your guidance.
    Best Regards

    • 1. You won’t be able to deposit in NRE account.
      2. The bank would ask a declaration or proof of source before they would allow credit in your NRO account.
      3. As per IT laws, any loan received by cheque can not be paid other than in account payee cheque / draft or online transfer.
      4. Your cousin would not have any proof/ trail of 17L in cash i.e. he withdrew from his bank account and kept and then returning to you. If he does, he would be able to deposit the same into his bank account and then can transfer/pay by cheque to you.
      5. If you deposit 17L, you will surely get an inquiry / notice from the income tax department.
      6. My advise: Don’t do it; you would be in big trouble. Thanks.

  101. Dear jigar,
    I am working since 3.5 years in abroad and transferred around 30 to 40 lakhs in my nre account. Also i had given the money to my relatives as a help. Now they return back to me can i able to deposit that amount into my nro account as i open the nro as well and what is the procedure to transfer funds from nro to nre however i have bank statement of nre and international bank account.
    Looking for you response.

    • 1. Only if you can prove the source i.e. withdrawal from bank, you may not deposit the same into your account. I think without any source, bank may not allow credit of such high amount in your account. Also, as you would deposit more than 2.5L, you may get an inquiry from the income tax department.
      2. If you transferred from your bank account to your relative, they can repay you via bank cheque. If they had withdrawn from their account, it is advisable for them to deposit the cash into their account and then give you the money via cheque.
      3. For transfer from NRO to NRE, you would require a CA certificate in form 15CB and file form 15CA. Thanks.

  102. Mr Jigar, I am an oci holder from U.K. I have an nre account with SBI.
    I have sent funds over 50 lakhs since 2010 until 2015. They’re already taxed in U.K.
    I have transferred, written cheques & also withdrawn personal cheques from my nre account to give money to my relatives (cousins) for footing medical bills, family maintenance & functions etc. all without any interest. Now they are in a position to return the money back. What should I do to receive this money without any problems with the income tax department. I am now working in India since 2014, & pay tax as an employee in India.

    • Ask your relatives to return the money in cheque. I would not recommend accepting cash now as old 500-1000 rupee notes are no longer legal tender. Also, you would have given the loans by cheque only. You may deposit the case based on the available balance as your cash on hand. Thanks/

  103. Hi Jigar
    My father gifted a property to me in 2012 (in joint names of my father, mother and myself). That property was sold this year and around 20 lakhs was transferred to my domestic account. Now, I am an NRI (with Indian passport) and i need this money in UK. I have a few questions:
    1. Can I Directly transfer the money “online”, from my domestic account to UK account? This seems to be the easiest option.
    2. Do I need to first transfer the money to my NRO account and then to my UK account? If I do this, the bank is asking me to generate the 2 CA certificates, sign them (means CA has to send them from india to UK via courier) and then send them back to bank’s Mumbai branch – will take around 10 days in total or more.
    3. Can I transfer from domestic to NRO to NRE to UK account?
    What seems to be the best procedure?

    • 1. Gift of property is valid if a stamp duty have been paid transferring the ownership rights to you. Please ensure if you are the sole or 1/3rd owner of the property.
      2. You are not allowed to have a resident account but convert to NRO account. As sale of property is a taxable transfer (capital gain), you would need a CA certificate in Form 15CB and file 15CA to remit the funds to UK.
      3. You won’t be able to transfer funds without 15CB/15CA. Please contact your CA. Thanks.

  104. Dear Jigar and All,
    I need your valuable feedback on my situation.
    In Oct 2016, in error I transferred around 20K sterling pound to my Fathers resident bank account (ICICI) instead of my NRE account (ICICI). This fund was transferred wit the intent to close my Home Loan account (HDFC). I tried to explain the situation to HDFC, but unfortunately they cannot accept funds form my Fathers account. Hence, I think only option I have is to open NRO account for the discussed transaction between my father’s account to NRO through to my NRE.
    If you think that is the only way out, then please advice further on 15CA & 15CB fillings, as the amount was not earned in India & it is shear error encountered while transferring funds.
    Note: I am travelling India in the 1st week of Dec 2016.
    I will look forward for your valuable feedback.
    Thanks in advance
    Kind Regards,

    • 1. I am not sure why HDFC require NRE funds. I think they may also accept NRO funds. Also, RBI allows residents to pay for loans of close relatives. Was the loan taken with an undertaking that you would pay from NRE?
      2. If you can’t convince the bank, you can either send the money again (your father can give gift to you or return the loan amount after 1 year that you can credit to NRE account directly – conditions for loan on repatriable basis to be fulfilled) or transfer the funds from your father’s account to your NRO and then to your NRE account. Thanks.

      • Dear Jigar
        Appreciate your feedback.
        Unfortunately, I think I did agree to pay EMI through my NRE account.
        HDFC is being cheeky, they know that I am stuck they will get as many as EMI out of me. Anyhow, I agree with your approach of using NRO route.
        Thanks for your feedback.

  105. Dear Jigar Bhai
    My son is overseas and he has NRO and NRE account in India.
    I want to gift him some money in INR so that it can stay in his NRE account and earn tax free interest + liquidity.
    How do I do that ? Do I transfer it into his NRO account as gift and then parallely get the forms advised above to transfer from NRO to NRE immediately.
    Do I have to show source of where I got the money to give him gift. I got this from my daughter and she got it from her salary income. It will be a long chain. Me and my daughter file return every year but now my daughter is out of job last two months. I am senior citizen widow 70 years.
    Thank you for your advice.

    • 1. Before transferring funds for saving Indian tax to NRE account, please confirm with your son as he may have to pay tax in his resident country for any income in India and the tax rate may be higher than India.
      2. You can gift the funds directly to his foreign account in foreign country that he can remit to India for NRE FD or you can gift to NRO account and then transfer to NRE after 15CB/15CA. If you need guidance with managing investment in a tax-efficient way, please contact us. Thanks.

  106. I transferred 15k from Indian account to NRE, so will it be any issue of delay of money getting credited.

    • Please contact your bank. The bank needs to approve the transfer. They may have a query and would be the best way to find out why delay. Thanks.

  107. Hi Jigar,
    I am an NRI working in Africa. I want to remit around $ 10K to my NRE account in India. Will it attract tax penalty in current scenario as the above amount is higher than Rs 2.5 Lakhs.
    Thanks in advance.

    • There is no inquiry, issue or penalty for any official transaction. As you will be remitting funds from Africa to India, it is not taxable and no inquiry. No need to worry. Thanks.

  108. Dear Sir,
    Iam a NRI currently working in UAE. I gave around money worth 30 Lakhs INR to my colleague (from a personal loan taken in UAE), of which he returned around 22 Lakhs in India as cheque in name of my Father in law & mother in law. Those amount were deposited in their respective savings account.
    In case of opening a FD in my NRE account, how to bring those money to my NRE account.
    Your valid suggestions pls.

    • 1. The nature of money transfers needs to be determined and only then FEMA rules related to that specific nature needs to be followed. There are three in your case. Transfer from your account to your friend, from your friend to your in-laws and your in-laws to you.
      2. Please note, explaining 22L credit in your in-lwas account would be very important as they are not allowed to accept gift from non-relative. If loan, they need to return the same.
      3. If possible, I would recommend reducing the number to just two – transfer from you to your friend and then from your friend to you (i.e. ask your in-laws to return loan to your friend and ask your friend to give money to you in UAE or in India in NRO account.
      4. Any loan to non-relative (your friend) would only be on a non-repatriable basis and can be credited in the NRO account. From NRO, you may transfer the funds to NRE account. Thanks.

  109. Dear Jigar,
    I am so impressed with the intellectual and competent advice to so many people here.
    Hope you could help me as well. I am an NRI for 10 years. In 2013 I lent my brother money (30 lacs) and he’s comfortable to be able to now return it in 2016. I transferred the amount from my NRE account to his bank account using online banking. He now has money (30 lacs) in his account and has asked me to provide him my account details to accept the cheque deposit. I have the same NRE account as well as an NRO account. With another bank I also have a savings account.
    What is the best method to receive the funds. My brother’s CA has advised him to return the loan into the same account from which he got the money from i.e. my NRE account.
    Thanks so much.

    • Yes, if the loan was given on repatriable basis, it can be directly credited in the NRE account. Certain conditions such as no interest, term (1-3 years), use of funds (business not involved in Real estate or agricultural) etc. needs to be complied with. You would need to convince the bank that the loan was on a repatriable basis for it to credit the funds in the NRE account. It seems that your brother’s CA is knowledgeable about FEMA laws. Please coordinate with your bank, brother and brother’s CA to directly deposit the funds in the NRE account. Thanks.

  110. I have resident a/c in India but I am NRI since last many years. How can I turn my resident to NRO with out much drag on my money?
    Can I cut a check from my resident a/c and deposit in my NRO? OR the best way of doing this

    • The right way would be to inform the bank of your NRI status so they make your resident account an NRO account. Other option would be to transfer all funds to your NRO and close the resident account. Thanks.

  111. Me and my wife who is a housewife are NRI and I have created FD around 22Lakhs on my wife’s account in India. I have NRO account and she doesn’t have. I have already paid all taxes on that amount in US. I think I Should change her resident account to NRO account so my question is – the interest earned on that amount is taxable on my name or her name?
    or should I transfer all amount from her resident account to my NRO account and then eventually to my NRE account.
    thanks in advance.

    • 1. In India, there is no MFJ – Married Filing Jointly so the money and income may not be clubbed. As the FDs are in the name of Wife, it is her money. As she is an NRI, she can not have a resident account but only have NRO account for local funds.
      2. The nature of any transfer from one person to another needs to be determined. It can be either gift, loan or income. The FEMA rules related to respective transfer needs to be followed.
      3. In your case, I would advise you to convert the account to NRO and transfer funds from NRO to foreign account. Or you may open her NRE account and transfer funds from her NRO to her NRE account. Thanks.

  112. Sir , what are the documents required for the money transfer from NRO to NRE account of an Australian pasport holder with OCI card. He does not have PAN card issued in India hence 15 CA / CB can’t be generated. Fund in NRO account is against normal saving

    • Unfortunately, PAN would be required for NRO to NRE transfer or for remittance of own funds. Please apply for the PAN, which my take 4-8 weeks. Thanks.

      • Mr Jigar, i think u r the right person i was looking for.
        My query is simple as under..
        I am in UAE since 10 yrs with family, holding 4 NRE ACs (three jointly with my Wife & One AC on my wife name where i am the nominee).
        Now i want to invest abour 50 Lcs with my friend cum contractor working with Govt tender (Aproved), in short making 5% of partnership in 100 Cr project (10% =10Cr fund should be available with Contractor’s/ my frined’s AC so 5% partnership= 50 Lcs).
        Now the Doubt is Can i pay all money directly to his AC from My NRE AC?
        MORE OVER……..
        How i can receive this fund back to my NRE AC when he will start giving me the invested money back, it will be in installments as the project will move on & bills will pass from Govt.
        About poject:
        MP baseg Govt tender to construct Sewage treatment unit including Operation & Maintenance (10 yrs project).
        Money refund will start after 4 years from now.
        Can i receive fund direct to my NRE AC from the contractor AC showing that only principal Amount received back- 50Lcs?)
        Ofcourse i will be getting some profit which i can settle in Cash, or give your idea how to receive the profit in AC withing approproate tax payment ofcourse.

        • 1. First you need to define the nature of transaction – whether a partnership or a loan and follow rules related to the respective nature. As both are allowed on a non-repartriable basis, the money can only be credited to NRO account. And, only after CA certificate, may be transferred to NRE.
          2. I would not recommend to have the profit in cash due to various laws relating to black money and undisclosed income and it is not a right thing to do.
          3. All money would go to NRO account only. Thanks.

  113. Hello Mr. Patel,
    I am a NRI and an OCI card holder settled in US. I had transferred one crore rupees to my NRE account about two years ago and wrote a cheque out of NRE to my cousin as a loan. My cousin is in a position to repay the loan now.
    1. Can the funds be directly transferred from his account to my NRE account?
    2. If yes then what type of documentation do I need to prove that it was a loan?
    3. If no then how do I get that money back into my NRE.
    Will appreciate your advise.
    Thanks in advance,

    • 1. No. As you are not a “Close Relative” to your cousin, the loan would be in a non-repatriable basis. Please make sure that you comply with the RBI rules relating to the same.
      2. There is no requirement but you may have a documentation that list the conditions e.g. term, rate of interest, etc., just in case if required.
      3. The money will be credited in the NRO account. While it is a non-reptriable loan, please contact the bank and your CA to transfer the funds from NRO to NRE account. Thanks.

      • Thank you.
        Will that money be subjected to tax, once transferred to NRO or bank will look at NRE transactions for incoming transfers and validate that it is not an income?
        Do I need to file forms 15CA and 15CB?

        • You would need to comply with the requirements of the bank. Thanks.

  114. one of my client had received loan from NRI out of his NRO account and the fund is transferred by NRI from his NRE account to NRO account at the time of giving loan . Now the loan receiver has repaid the loan back to NRI by transferring fund to the NRO account of NRI.
    Now NRI want to transfer fund from his NRO account ot NRI account whether 15CB required and if yes guide for the taxability if any

    • Taxability is on Income. There is no tax is nothing extra is received. However, taxability of principal amount needs to be determined. Please contact your bank and CA to understand the procedures. Thanks.

  115. Sir i want to know if income tax slab rate applicable for nro a/c. If in financial year i deposit more than 250000rs ihave to pay tax on it.

    • The tax slabs are the saame for residents and NRIs. However, the TDS – rate at which tax is withdrawn is different. For any interest income, TDS @ 30.9% will be deducted. However, if you do not have other income, you can file the tax return. Your tax liability will be based on the slab rate only and you would get refund of the additional tax deducted from the interest income. Thanks.

  116. Sir i have a resident a/c in india but my status is nri from last 5 years. I have no source of income in india. All money in my a/c is from foreign country. From last two years i am sending through WesternUnion direct into bank. But before it isend through western union agent where my relative pick the cash and deposit in my a/c. Sometimes when i go to india carry foreign currency and after exchange in cash deposit in my account myself. Entries on my passbook are cash deposit self. Sir my question is if i convert my a/c into nro then later can i transffered total amt in nre a/c.

    • I am not sure whether you are sending money to your friend by cheque (or credit in bank account) or in cash. If cash, it may be a hawala transaction and it is not legal. Also, all cash deposit in your account needs to be supported by documentary evidence. I would recommend you to review the credits in your account and decide. If the money was transferred or credited legally into your NRO account, you can transfer the funds from NRO to NRE account. Please contact your bank and your CA. Thanks.

  117. Hi Jigar-
    I have transferred around 25lakhs to my Indian Saving account while I was in USA.
    I should have opened NRE Account and transferred to it but i did mistake.
    Now, I am in Canada and want to transfer money from inr to Cad . I already paid taxes when I was in Usa for this earning.
    Can u suggest opening NRO ACCOUNT and then transferring to NRE account. Is there any charge by bank to transfer money from Nro to Nre?

    • Yes, please open NRO and NRE account and transfer officially. There is no tax or charge on transfer except bank may take the conversion fees or wire transfer fees. You may have to pay your CA for the forms as well. Thanks.

  118. Dear Sir
    I am a NRI and I have followed the exact procedure as mentioned in your article to transfer the “interest earned on my NRO FDs” with ICICIbank in past 4 years to my NRE savings account. In my case the source of funds is “Interest earned in past 4 years”. But now bank says that I can only transfer the amount of interest earned in current year and not past years. Is it true? I think I should be able to transfer all amount as I have provided the CA certificate as well as copies of TDS certificates for past 4 years. Please advise. Thanks

    • No. You can transfer upto $1 million per year from your savings. There is no limit to transfer/ remit current income. So you just tell them that this is part of $1million threshold and not under transfer of current income. Thanks.

  119. Hi,
    I am an NRI since last 4 years. I am selling my property in India and would like to get the sale proceeds to Singapore where i’m currently residing. I have following questions –
    1. can i ask the buyer to deposit sale proceeds to my NRO account?
    2. After paying tax on the profit, can i show the documents to the bank to transfer money to my NRE account?
    3. can i transfer money from my NRE account to my Singapore account?

    • 1. Buyer will give a cheque. It is upto you where you deposit the money. And, you can deposit the same into your NRO account.
      2. As you are an NRI, the buyer needs to deduct the TDS for the tax that you owe. Once tax is paid, you can transfer the funds into NRE account after completing certain procedures – 15CB, 15CA, forms, documents.
      3. Yes. Once money is in NRE account, you can transfer it outside India to your account without any restriction. Thanks.

  120. Dear Jigar,
    I am US citizen and have OCI card. I have NRE FD, savings and FCNR accounts( 3-5 years term), NRO account and also few SB accounts(old) which I never converted to NRO. I was NRI for FY15-16 and for FY16-17 I will be ROR. I moved back to India in Dec 2015 and was getting US salary from US employer from Jan 2016 till JUL 2016 while I was in India. I took up job in India from 1st Aug 2016. I contacted my Banks mentioning that now my resident status changed, but the managers are telling that there is no need to convert NRE FD immediately and this can continue unitl it matures. Same was the response for FCNR deposits. They also mentioned that I don’t have to declare the interest in my Indian tax returns and no tax will be deductible on the interest earned. I also read on RBI FAQ that FCNR deposits can continue till maturity and it also mentions that FCNR account interest is non taxable.
    Please advise on the below:
    1. Should I have to declare interest accrued on NRE FD in Indian ITR and pay the tax on intest for FY16-17 ?
    2. What about FCNR deposits ?.
    3. Bank is not showing interest to change my accounts’ status. Should I continue NRE and FCNR accounts till it matures ?
    4. Since I am ROR for FY16-17, I will be showing my US salary gross earnings ( APR-JUL) in Indian tax returns. Should I claim deduction of all US Federal tax paid ( Jan-JUL) in Indian ITR as part of DTAA or it should be only from APR-JUL ? The reason I am asking que is, If I had got US salary for only JAN-MAR then my federal tax would have been nil since the total salary amount will be less than standard deduction + Exempted amount. Federal tax deducted from every month salary (Jan- Jul) is due to salary earned from Apr-JUL
    Thanks in advance.

    • 1. The NRI bank managers are not tax experts and sometimes are not even knowledgeable about FEMA provisions. Most of them, unfortunately, are interested only in their own book size and targets.
      2. That being said, you are not allowed to maintain NRE bank account after your return to India i.e. Dec. 2015. There is no specific mention about NRE FDs, but you may continue FCNR FDs until maturity. As a result, technically, the interest on NRE account would become taxable since Dec 2015. The FCNR FD interest would become taxable when your residential status changes to Ordinary Resident.
      3. While converting NRE FD into Resident immediately or after maturity would depend on the bank’s internal procedures and interpretation of FEMA laws, I would recommend you to have a documentary evidence (letter or form or anything) that you conveyed the change of status to the bank. It would be upto bank whether to change the status or not.
      4. I would think your salary income from Jan-Jul 2016 would also become taxable in India as you performed your services while physically presence in India. If you only report your salary from Apr-Jul as your income in your tax return, you can only be able to claim tax you paid in those months as foreign tax credit under DTAA. Thanks.

  121. My daughter has about 2 lac Indian Rupees in NRO account. This was a proceed from a matured Unit Trust policy.
    How can I repatriate this amount (around $3K OR LESS) to her US account.
    For such a small amount do I need form 15CB to tranfer from NRO to NRE account.
    Can this be done remotely

    • 1. Yes. As this may result in a capital gain, which is subject to tax, 15CB/15CA may be allowed. However, as the amount is only 2L, you may be able to remit the same without 15CB with just 15CA part A. Please contact your bank and confirm the understanding.
      2. Form 15CA is to be submitted electronically so you can do that remotely. The bank may ask for a physical signed copy of the 15CA form that you may need to courier to the bank. Thanks.

  122. Dear Mr. Jigar,
    i would like to enquire about withdrawing my PF amount in NRE account. As i have submitted the cancel cheque of NRE account for the withdrawal of my PF amount. How i can get it in my NRE account. if it is possible to get it in my NRE account. Please suggest.

    • 1. As PF is a local (Indian) source funds, you won’t be able to credit/deposit the same into your NRE (Non Resident External) account, where the source of money needs to be external – outside India.
      2. You would get the funds in your NRO account and from there would be able to transfer to NRE account after completing certain procedures and forms. Please contact your bank. Thanks.

  123. Good morning sir,
    I an an NRI residing in saudi arabia.
    I have 2 queries and i require some guidance from you.
    1.I have NRE and NRO accounts in HDFC bank and old normal saving account in SBI bank.I wanted to convert my normal savings account to NRO.Is it possible to convert this savings account alone into NRO account without opening new NRE account with SBI as i am not interested in opening anothe NRE account just for this sake.
    2.I withdrew some money from NRE account 2 years ago and now i want to get that money deposited back intomy NRO account first and then to NRE account.How can i proceed for this?

    • 1. Yes. You just need to inform your SBI bank that you are now an NRI and provide documentary evidence for the same. They will convert (re-designate) your account from resident to NRO account.
      2. Yes, you can do that. You would need to prove what you did with the money. Also, a CA certificate in form 15CB and filing of form 15CA may be required for transfer of funds. Thanks.

  124. Jiger,
    Need to transfer funds from India to Singapore to buy a home.
    1. I have funds in my NRO account with ICICI
    2. Should i need to transfer funds from NRO to NRE in order to move the funds from IN to SG?
    3. Does the 15CA and 15CB required to move the funds from NRO to NRE?
    4. From NRO, can i transfer funds to my SG DBS account
    Please advise.

    • 1-2. There is no need except you want to plan your transfer depending on the exchange rate.
      3. Yes, provided the source of funds in the NRO account is taxable in nature.
      4. Yes. Thanks.

  125. Sir, I was in abroad from Oct-2011 to 12-June 2015. I came to India permanently and Joined job in India on 15-June-15.
    I hold a NRE account and salary was being transferred into the NRE account. for financial year 2014-15, I was in abroad for more than 182 days so my status was Non-Resident. hence, No tax on my income in NRE account.
    Now, I am going to fill ITR for financial year 2015-16. for this financial year, I received 3 month(April’15 to June’15) salary in NRE account and 9 month salary in India. Now, I was only 90 days outside of India in this financial year so my status is ‘resident’ in this financial year 2015-16.
    My doubt is that If my status is resident then 3 months salary(April’15 to June’15) which was deposited in NRE account, will be taxable or not? My account is still NRE, I am going to convert it into the Resident saving account.

    • 1. As you have moved to India for employment (your intention is to stay in India for an uncertain period), you are a resident as per FEMA and are not allowed to maintain an NRE account for 2014-15.
      2. As your job is in India and you performed your services in India, the income accrues in India and will be taxable in India. Please note that only interest income in NRE account is exempt. Any other income is not exempt from tax in India.
      3. For FY 15-16, I think your status would be Ordinary Resident. As a result, your global income would be taxable in India. However, if you have paid any taxes outside India for job outside India, you would be able to get the foreign tax credit under DTAA between India and the foreign country. Please contact your CA. Thanks.

  126. Dear Sir,
    I had booked a Flat in Bangalore, India in the year 2015 and have paid ant amount to the builder against the Flat that I had booked from my NRE Account. Now the Builder is not capable of handing over the flat as a result the Builder is ready to return me the Amount what I had paid them. Sir, is it possible for me to get the Amount back in my NRE Account through which the amount was paid. Please advice

    • Yes, the refund of money paid for purchase of a residential flat paid from NRE account can be credited directly to the NRE account. If the builder is paying any interest, the interest portion will go to the NRO account. However, if the builder deducts the TDS @30.9% on the interest portion, the after tax interest can be transferred to NRE account after completing form 15CB/15CA procedures. Thanks.

  127. Dear Sir,
    I am currently US GC holder. In 2007-08 I did transfer the USD to Indian domestic savings account and from there Fixed deposits in Karnataka Bank. Now the fixed deposits are going to mature. Can I convert the principal amount to NRE account?. If yes please let me what documents are required.

    • A resident account can only be converted/redesignated as NRO account. You may not directly convert the balance to NRE account. You would need a CA certificate for the same. I would assume that you had paid taxes on the interest income. If you had given 15G/15H for no deduction of TDS (against law) or not file tax return, it can not be said that the amount is after tax and may not be transferred. Thanks.

  128. Mr Jigar, Your blog is one of the most informative in assisting Indians living abroad. I would like to solicit your advise on couple of things. I am in the process of selling a real estate property (land) in India and I am committed to following the right procedures to repatriate the sale money back to US for some college expenses.
    I have an NRE account currently but to go through the 15CA/15CB procedure with my auditor/bank, do I need to have an NRO account to repatriate the sale money from India to US?
    I also read that the taxes on the sale is only on the capital gain. If I end up realizing say 50 Lakhs on capital gain, how much tax would I end up paying before I repatriate the money to US?
    Are there any financial products/instruments where I can continue to invest in India and reduce the tax burden in any way before I repatriate the money to US?
    I do have family expenses in India to take care of my parents. Would it be possible for me to allocate certain portion of the Sale money for family support before the taxes and then repatriate the rest to US after paying taxes?
    Thanks in advance for your advise and guidance

    • 1. Only if you have a CA certificate with the cheque, you may not credit your NRE account. As it takes few days to credit the NRE account, it is recommended to open NRO account and credit the funds there so you are sure of the receipt. Thereafter you can transfer from NRO to NRE or directly to USA.
      2. While tax is only on capital gain, you would need to obtain a certificate from your IT Officer for the lower deduction. Else, the buyer may deduct tax on the entire amount. The tax rate is 20%+surcharge (if applicable)+cess.
      3. While you may invest in Capital Gains Tax bonds to save tax in India, you would have to pay tax in USA. So I would recommend to calculate the US tax on sale of property and accordingly, calculate to be pay in India to get maximum benefit under DTAA and invest in bonds of only the amount that is most beneficial.
      4. Only after tax is paid, you may give funds to your family for maintenance. Thanks.

  129. Hello Sir,
    We were in USA 10 years back and transferred money to India via money2india. However we transferred the money to our resident savings account (instead of NRE)..We purchased residential property out of these funds.
    We became permanent residents of Canada in 2017 and converted our resident savings account to NRO/NRE. Now we have sold the property and want to bring the funds to Canada.
    Since we bought the property by wrongly sending funds to our resident account, would we have issues in now bringing the money to Canada?
    Please Advice

    • The money will go the NRO account and from there, you are allowed to transfer the funds to NRE or remit the same to Canada. Please contact your CA. Thanks.

  130. Hey, I have been given a run about to transfer money from NRO to NRE. Note I have successfully acquired FORM 15 CB from the accountant and FORM 15 CA is done. I am dealing with ICICI and not sure whom to blame for this situation. Looks like each person have their own views on this !!

    • Please explain the situation. In short, if you can’t convince a bank, you would need to do as per banking procedures and requirements. Thanks.

  131. Hi,
    Am currently an NRI.
    Would like to transfer my Indian earnings gained through salary Income when I was an Indian Resident from my NRO to NRE Account.
    I understand that it is permissible up to a limit of 1 million USD/ year on submission of 15 CA/CB Certificates.
    What are the applicable Taxes payable in this case?
    Would like to know whether there is any currency conversion involved while the transfer is effected from my NRO to NRE Account?
    Can I also transfer my Indian Salary earnings to my overseas Account? Is it the same limit that is applicable? i.e. 1 Million USD/Year?
    Further, as my current base in India is in Chennai, would like to know whether you have any Branch in Chennai?
    Thanks in advance for your help!
    Best Regards

    • 1. There is no tax on transfer. Tax is only on income.
      2. As both NRO and NRE are denominated in INR, there is no currency conversion charges.
      3. All your past savings and proceeds from sale of assets are allowed to be transferred to NRE account.
      4. While we do not have any branch in Chennai, we serve clients from all across India and all around world. Thanks.

  132. I have been through previous question asked by others and your reply to them. The answers are very helpful. I have one question that I would like to clarify.
    After funds are transferred from a local account to an NRO account, can the funds be transferred immediately to an NRE account? If yes, then how does the tax implication work while the funds are in the NRO account?

    • Only after payment of tax the funds can be transferred to NRE account. You would also need to provide CA certificate in form 15CB and file form 15CA for the same. Contact your CA and bank. Thanks.

  133. Hello Sir
    I live in usa last 8 years with my family. we have joint demat account in india before 20 yeras ago. we didnot sale any security now value is 30L. another open demat account in 2014 yes, for this account received stock from our parants about 6L. and in this account i filed fatca form ,what can i do for future. very confution about this mattar. please give guidlines about fatca or irs declaration.
    Jay shah

    • 1. As an NRI, you are allowed to invest in equity shares only under PIS of RBI. Also, only one NRO-PIS account is allowed to be opened. If you want to continue investing in India in your name, I would request you to invest as NRI and as per PIS rules. Else, you may gift the shares to your close relatives (transfer from your demat to theirs) and close the account.
      2. You would need to give FATCA declaration as it is part of the revised KYC requirements. Once your account is mapped to be owned as a US based NRI, you are not allowed to have a resident Demat account, can have only 1 Demat account and your account balance and income information will be shared with the IRS. Thanks.

  134. Hello Jigar,
    I am Mini an NRI from Singapore. Your blog is very simple, informative and useful. Thanks a lot for that.
    I have a couple of questions,
    1. I have bought a land in India in 2013 using my NRE account. Now the land value has appreciated. I want to sell the land and bring back the money to SG. I understand that I have to go through 15CA, 15 CB forms and submit to the bank to get my money back in NRE account. I understand that once I sell the land ,the money can be transferred from NRO to NRE account.
    a. Can I transfer the land appreciation money as well to NRE account or is it only the amount I paid in the early 2013 to buy it ?
    b. Is the amount taxable? Guess a 20.6% TDS will be deducted right?
    c. What are the rules of RBI regarding this?
    d. Can I leave the money in my NRE account in INR and may wait for a better exchange rate , so that I can convert to SGD later?
    2. Regarding farm lands, can I buy farm land in India with my NRE account? Once I sell it, the money can be repatriated back to SG?
    3. I have also invested some in stocks. Is it possible for me to bring back the money I profited back to my NRE account?
    Thanks for your time.

    • 1. I would assume that the land is a non-agricultural land.
      2. Yes, you can transfer both the principal as well as the appreciation from NRO to NRE account.
      3. The gain / appreciation (after indexation) would be taxable. The rate is 20% + surcharge (if gain >50L) + Cess. The rate would change based on the amount of gain.
      4. RBI allows transfer of amount on sale of asset from NRO to NRE account without its approval provided the property was purchased as per FEMA laws.
      5. Yes, you can leave your money in your NRE account and wait for better rate for remitting the fund to SG.
      6. An NRI is not allowed to buy agricultural land, plantation property or farm house/land.
      7. Yes, provided you have invested throught PIS account. Thanks.

  135. Dear Sir
    Thank you for your services and for the absolutely clarity with which you provide your response. I moved out of India and currently in Singapore and have been reading to convert my existing bank accounts in india into an NRE/NRO. I have made my understanding and queries are points below to make it easier for you to advise/comment.
    1. I have savings account with SBI and citibank in India. Both operating for about 10 years now. I have waited until all active FDs to mature and moved & consolidated all my funds into SBI savings account. I have filed ITR for all the years until FY 2016-17 showing all deposits and other income etc. I have not further booked a FD and its lying in my account as cash in SBI. I want to convert my citibank account as NRO as i will get rental income there. And convert SBI account as NRE and book NRE FDs for the existing funds there. Is this possible? Or should I only remit fresh transactions to book FDs? Apart from regular NRI paper work with the banks, is there anything else i need to do particularly to book INRs in SBI to NRE FDs?
    2. I hold a PPF account with SBI since 2004 and the tenure is getting over in 2019. I have contributed every year and its active. I understand that I can continue to contribute until i finish the tenure as i have become an NRI recently. How to make remittances into PPF until 2019? From NRO account? or from the SBI NRE? Are such remittances to PPF account allowed?
    3. Also upon maturity of PPF account, I understand that I can withdraw and deposit the funds a NRE FDs. Is this correct?
    4. I don’t have any plans to repatriate funds bank to Singapore. And i intend to go back to india and live there in the next 5 years. Keeping this timeline in mind, Should I opt for FCNR deposits or go ahead with NRE FDs? (as in to protect the savings from INR fluctuations/inflation etc) Would it make much significant difference.
    thank you

    • 1. Both your resident account can only be converted to NRO. You would need to open NRE account with the bank. Once NRE account is opened, you may transfer the funds from NRO to NRE after CA certificate in form 15CB and filing of form 15CA.
      2. As per revised notification, PPF account is deemed to be closed on becoming NRI so you may not contribute into your PPF account now.
      3. The money will be credited to your NRO account only.
      4. First, I would recommend to transfer funds to NRE account. Once there, you may invest in NRE FD or FCNR FD or even mutual fund. Please contact us if you need any help for better return/risk tradeoff. Thanks.

  136. Hello Sir,
    This is a very informative post.
    1. I have a EPF account and would like to withdraw as this will not accrue interest any more I assume.
    2. As I have it for more than 5 years, hope my PF withdrawal will not be taxable.
    3. Once I withdraw, whole amount will go into NRO account.
    4. When PF withdrawal is not taxable, do I still need to get 15CB and 15CA.
    5. Being outside India, is it easy to get 15CB and 15CA or does it involve lot of mailing between the CA and myself? Worried that any delay will incur interest in NRO and subsequently a tax. Is there a better source where I can do this quickly?
    6. or Should I hold the withdrawal process until I find a CA.
    Thanks in advance!

    • 1. The bank would not know the taxability of PF so you would 15CB/15CA.
      2. I don’t think there is a lot of mailing. You would need to prove the source of funds and if it is taxable of not. If your CA is okay, he will issue the certificates. I would also suggest you to contact your bank. Thanks.

      • yes thats True
        I appreciate your though
        But there will be no Capital Gain Implications if its done through Family Arrangement or Gift Deed only when it comes to Gift Deed there may be stamp duty.

  137. Hi,
    let me give some background information:
    My sister (US-based) has booked and made full payment for an apartment . The funds have been wire-transferred from the US Banks directly to Builder.
    Due to health reasons, she decided not to take the possession. Instead, she has submitted the required documents to Builder and de-registered the Agreement for Sale.
    My sister and I’ve mutually agreed to a ‘family arrangement’ where the flat will be transferred to my name and I will reimburse her the actual cost incurred in acquiring the property.
    Builderwill now complete the registration of the said flat in my name.
    Builder has informed me that this transfer arrangement will NOT involve Builder in any financial transaction (except for the actual procedural expenses relating to de-registration, registration, stamp duty, legal fee, scanning cost, etc.) either with my sister or me and that is up to two family members. Builder has waived the transfer fee since it is within the family.
    I’m exploring various options for payment settlement between my sister and me such as:
    Transfer the funds from Australia to USA; OR
    Transfer the funds from my NRE account to her NRE account within India.
    I wish to ensure that, while the transaction is legally compliant as well as cost-effective and preserves my right to repatriate the sale proceeds if & when I choose to dispose-off this asset in future.

    • 1. I would recommend that the builder return the funds to your sister. It may go directly to her NRE account.
      2. I would recommend that you pay to your builder from your NRE account.
      3. Any transfer from your bank account to your sisters may be considered as sale of property by your sister to you. Also, it may complicate sale transaction in future as you would have no proof that you had paid the purchase amount to builder. I highly recommend #1 and #2 above. Thanks.

      • Also builder will pay me in INR which i need to transfer to NRE at my cost & Compliance of 15CA & 15CB

      • yes thats True
        I appreciate your though
        But there will be no Capital Gain Implications if its done through Family Arrangement or Gift Deed only when it comes to Gift Deed there may be stamp duty.

        • 1. It would be difficult to explain a family arrangement when sister buy apartment, then register in other sister’name and other sister pays full money. Family arrangement would be where property owned by many joint holders in the family and then an arrangement is made where ownership is transferred to respective person and usually in case of joint family or ancestral property.
          2. If you gift the property, why pay 6% stamp duty where you can just convince the builder to accept the funds and then refund. He has nothing to lose except that he will have 2 entries in bank and it will clear the transaction. If money is paid, it is not a gift.
          3. The refund by builder can be directly credited to NRE account provided you paid out of NRE account. It is allowed. So you don’t have to incur any cost. Thanks.

  138. 1. We are planning to retire and return to India with a view to settle down permanently in Chandigarh.
    2. Can we retain our Properties, Bank accounts, Shares & Provident Fund accounts overseas? These are acquired from overseas earnings. We have been Non-Residents for over 29 years.
    3. Besides bank accounts and Provident funds, we have two other major assets in Singapore:
    i) Residential house where we are presently residing, bought by our earnings in Singapore.
    ii) We are both in business in Singapore. Prior moving to India, we will sell our shares in our companies to individuals. Payments for these shares will not be fully made immediately, but will be made in an agreed manner over a period of 3-4 years. The share transfer has already taken place, the payments will continue to be received even after we are Residents in India.
    4. Regarding the Residential house must we sell it before we return to India?
    *Tax-wise should we consider putting it up for rent? Rental could be around S$ 2,000 pm. (Rs 84,000 pm approx)
    * We will put on rent only if it is OK to sell later when we become resident status in India.
    *In particular we are concerned about Capital Gains Tax when the property is sold later
    6. Will we be liable to any Wealth Tax on overseas holdings?
    7. What happens to NRE & NRO accounts & FDRs opened in Indian banks.
    * Can we continue using those, or must we close those accounts? Transfer to another account.
    *If we can continue operating them, then for how long?
    *What about earnings on those? Will they be taxable?
    8. We have a Will made out in Singapore which we made quite a few years ago through a lawyer. As per whatever I remember the Will would cover our assets anywhere in the world. However a few years ago the First Floor roof of a house in Chandigarh was gifted by my wife’s mother to her. We duly paid the gift tax and have constructed the first floor. The Registry for the same is also done. So, my question is that in light of this property, do we need to Register a Will in India? Or is the Will made out earlier in Singapore good enough?

    • 2. Yes, you can retain all your foreign assets outside India.
      3. About sale of shares and reporting of capital gain, I suggest that you contact your CA or any advisor for taxation. As per Indian tax laws, if you are an Ordinary Resident, your global income is taxable in India. However, you may not become Ordinary resident for 2-3 years after your return based on your number of days presence in India.
      4. No need to sell any property. However, you need to check the taxation of the income when you sell.
      5. There is no wealth tax in India. The wealth tax was abolished 3 years ago.
      6. On your return, you are not allowed to have NRO/NRE account but must transfer the funds to resident account or to RFC – Resident Foreign Currency (only from NRE) account. If you continue holding the NRE account, the interest would become taxable.
      7. While the Singapore Will would technically be okay, I would recommend making a separate will for assets in India. After your return, you may have more assets in India and the type of assets may change so it is recommended to change your will accordingly. Please contact us if you have any question. Thanks.

  139. Hello Mr Jigar,
    I have a question regarding one of the hot topics now Bitcoin. Suppose I buy a bitcoin abroad. I then send it to my indian wallet. I sell my bitcoin in India and get the money credited to my NRO account.
    Now if I want to get this money transferred to my NRE account, Will the source as bit coin bought abroad be acceptable. Is this possible.

    • Bitcoin is not regulated in India and RBI has not allowed NRIs to invest or trade in India in Bitcoin. So I would not advise any NRIs to buy or sell or both in India. Recently, the Income tax department has issued notices to 4-5 lakh persons involved in trading of Bitcoin in India. I don’t think you will be able to transfer the sale proceeds to NRE account as sale proceeds of only assets that were acquired as per FEMA laws can be remitted abroad i.e transferred to NRE account. Thanks.

  140. Dear Mr Patel,
    Appreciate your comments! 7 years ago after I moved back to India I converted NRE to resident India account (say amount X). I have proof of both the passbooks. Over the years, the money has grown after investing in FDs in other banks (say amount Y). I intend to move out of India. If I have to convert resident designated as NRO to NRE, then will it be easy for CA if it is the same amount (amount X) being transferred back to NRE (even though the money was shifted to other banks for FDs)? Will CA workload (and hence charges) be the same whether it is amount X or amount Y I am trying to convert to NRE? Will bank be able to convert without 15CA/CB if it is amount X (but, money had moved out to several banks) if I bring the money back to the same bank?

    • 1. You can only designate your resident account to NRO and not NRE.
      2. The bank will not be able to transfer funds from NRO to NRE without 15CB/15CA. You would need both forms.
      3. If you have been filing the income tax returns regularly and reporting your income, I think it will be easier for CA to verify the income.
      4. CA charges would be well worth his efforts and benefits that you will get in the nature of tax free income in NRE account for all future years. It may also save you from or reduce future compliance requirement of TDS, tax return filing and other reporting. Thanks.

      • Thanks, Mr Patel! Yes, I will move from resident account to NRO and then to NRE. I have been paying taxes in India (TDS, Advance tax) for FD interest and work income enough during the financial year. If so, will I need 15CA Part-C or Part-D? Thanks for your valuable feedback!!

        • Yes. The bank would not know whether you filed your tax returns or not.They would only rely on the CA certificate. As a result, 15CB/15CA would be required. Thanks.

          • One last question – 15 CA Part-C or Part-D in my case? Please let me know. Thanks again!

          • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) January 7, 2018

            If CA certificate in form 15CB is required, Only part C of form 15CA can be filed. Thanks.

          • Sir, FEMA declaration (when doing NRO to NRE) needs confirmation of person being NRI as per Income Tax Act 1961. It means I will have to be out of India for 182 before I can convert NRO to NRE. I was hoping to convert resident to NRO and then to NRE before moving out of India, but I think I will do NRO to NRE conversion after completion of 182 days abroad. Right? Thanks and Regards, Raj

          • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) January 10, 2018

            Only an NRI is allowed to have NRO and NRE account. If you are a resident, you are not allowed to have NRO/NRE account. Thanks.

  141. Hi,
    I have an NRE account opened in 2016. I was an Nri for 2016-2017. However for the year of 2017-2018 I am a resident event hough I was five months out of India during this period. Now again for 2018-2019 I will be a NRI as I have a job opportunity. Should I convert my NRE account back to resident account now or shall I use the same NRE account for transactions in 2018-2019. Or can I convert my NRE account to resident and then to NRO and then to NRE. All funds in that account is from abroad.

    • For NRE account, you need to be a non-resident as per FEMA. The FEMA is mainly governed by the intention and considers number of days in preceding year. With limited information, I am not able to know number of days and purpose of staying in or out of India. However, if you have already left India for employment, you may continue NRE status. However, if you are an NRI, you can only have NRO and NRE account. You are not allowed to have a resident bank account. You may not have two status for the same year or for different accounts. Thanks.

  142. Dear Jigar,
    Thanks for such useful information.
    I have some money which I have received from sale of under construction property in India. I have obtained Form 15CA/CB with help of a CA on 18th Jan 2018. I would like to transfer money from NRO to NRE account on Aug 2018 (that is the time when I actually need money back in UK). In the mean time I am planning to do fix deposit in NRO account it self for 6 months as with NRE account minimum duration of Fixed deposit is more than one year.
    My question is, will I be able to use same form 15CA/CB in Aug as financial year will change ? If not is there a big hassle involve in getting these forms again.

    • You may not be able to use the same 15CB/15CA form. I would request you to transfer the funds to NRE account and then invest from NRE account. While minimum FD term is 1 year, you may invest in liquid fund to earn similar return of the FD from NRE account. Please contact us if you need any help with investments, taxation or money transfer issues. Thanks.

  143. Hi,
    I have recently sold land and paid the required taxes and also received the 15ca/cb from the chartered accountant.
    Now the bank is refusing to do the NRO to NRE transfer, due to check number on the sale deed not matching the one deposited in NRO account. A check for full amount was taken as a guarantee, but i receive the money in installments. Is the bank correct in refusing this? even though the names on the check and on the sale deed match except the check number.

    • I don’t think so and you would need to fight it out. Or, you could ask the bank for the practical solution. I think if you can get a letter from the purchaser that the check mentioned in the deed was not encashed and new checks with new amount and date were given. Thanks.

  144. Mr Jigar, All the information in this thread is so useful and clear. Appreciate your time in responding to all the questions.
    Following is my situation and need your advice.
    I am an NRI since 2015. I have opened NRE and NRO accounts in India in 2015. Remitted most of the earnings from outside India to NRE account. And then I used to either withdraw the money from NRE account cards (my dad used to do using my cards in India) or transfer money to NRO accounts ( and withdraw money from that account) or transfer money to my other domestic accounts ( and withdraw money from that accounts. I know I should not still hold resident account but I am till holding). So after all these, all my money is in the form of ‘cash in hand’ in India.
    I wanted to know below.
    1. should I report to IT (may be during tax filing or let me know how to do) that I have cash in hand that is earned from income outside India?
    2. If I wanted to make any property purchase in India using the cash I have in hand, will there be any chances of getting queried from IT?
    3. If I wanted this money to be sent back to my NRE account, what is best way? Can I deposit back to my NRO account and move the funds to NRE account considering that I can show all the transnational proofs that same money is initially withdrawn from NRE account? ( Assuming that CA’s help is required in this regard to get 15CB).
    Thanks in advance.

    • 1. There is no requirement to report cash in your IT return. Due to demonetization in Nov 2016, I would assume that you have only cash withdrawn in new currency with you.
      2. Cash is not allowed to be used as a part of official property purchase transaction. An NRI is allowed to invest in property in India provided the amount is paid from NRO, NRE, FCNR or from inward remittances only.
      3. If that is the case, I am not sure why you would withdraw the funds from the account in the first place. Yes, technically, if your CA agrees and issue the CA certificate, you would be able to transfer the funds to NRE account. Thanks.

  145. Dear Mr. Patel,
    We are US citizens and my parents are Green card Holder. My parents have earnings from his successful business and also including gifts from us over the period of 20 years and inheritance by my grandfather. He also have made a will and inherited the assets between all his children and grand children. He also have FCNR deposits and hold FD’s in Rupees.
    a. How much money from FCNR deposits he can give to my family of 4 at a time. ( my children are over 21 years old.)?
    b. If received in US by individual account, will it be taxable?
    b. How are the FD’s in Rupees to sent in dollars the right way?
    c. What is the appropriate reason to be given in the form A2?
    d. Does CA ‘s clearance required?
    Will appreciate your guidance.

    • 1. As your parents are green card holder, i.e. US residents for tax purpose, US gift tax would also apply to him. As a US resident, they are allowed to gift $14000 to one person so both together can gift $28000 per year to each 4 persons of your family.
      2. He may also give a higher amount. However, he may have to pay tax on the same or make a declaration to adjust the gift amount to his lifetime gift limit i.e. estate duty limit. In USA, tax is only on the gift giver and not receiver.
      3. Amount can be transferred from their account to your account. They may do a TT / Wire transfer, ACH payment or write a cheque.
      4. Gift
      5. If money is in NRE or FCNR account, no CA certificate or clearance is required. Thanks.

  146. My son is US citizen. He has recently opened a NRO account (perhaps no NRE account) with ICICI bank. Usually every year I used to send a small gift of about equivalent 200-400 us dollar by international fund transfer to his us bank. Instead can I deposit equal amount of money in Indian rupees in his NRO account and will he be able to transfer this gift only to his us bank later some time. in other words is deposit by me is not “principal” in his nro account.

    • For transfer from NRO to NRE or to USA, your son would need CA certificate in form 15CB and file form 15CA. However, as a father, you are allowed under LRS – Liberalized Remittance Scheme to gift your son upto $ 250,000 per year without forms 15CB/15CA. Thanks.

  147. Hi
    -> I had moved funds from my foreign account to Indian savings account and put in Fixed Deposit,
    Ideally should have been put in NRE account but didnt have any NRE account at that time.
    -> The interest on FDs were subjected to TDS and the maturity ampunt were credited back to Saving account which were again moved to new FDs
    -> Now if i want to open a NRE account ,adn move the funds from this savings account to NRE , what is the process to move the funds to NRE from this savings account(which will become NRO account as soon as i open NRE)

    • 1. As TDS on resident FD is only 10% whereas the tax liability could vary from 0% to 30%, I would assume that you have been filing your tax returns every year.
      2. For NRO to NRE transfer, CA certificate in form 15CB and filing of form 15CA would be required as only after tax paid money can be transferred to NRE account. Thanks.

  148. Sir,
    Iam an NRI Working in Dubai im receiving salary and the same is credited to my NRO account instead of NRE account. Can these funds be transferred to my NRE account?

    • While you can try, I don’t think it can be transferred to your NRE account. However, please contact the bank. I think you would require CA certificate in form 15CB and filing of form 15CA to transfer from NRO to NRE account. As you are working in Dubai, I would recommend receiving your salary in Dubai and then remit to NRE account in India to avoid any complication. Please note that income received in India may be taxed in India. If salary is received in Dubai and then remitted to India, there won’t be any issue. Thanks.

  149. Hi,
    I do not have any income in India. I live in USA and earn only here. Do I still have to file taxes in India with nil income?
    What are the implications if do not file taxes but have plan to buy some property in India in future?

    • No. You are required to file the tax return only if your income is more than 250,000. There is no implication. If you receive any notice from the IT department for non-filing of tax return, you would reply that as you did not have any income, you did not file the tax return. Thanks.

  150. Dear Naresh,
    I am a NRI residing in The Netherlands and I have a situation where I have mistakenly transferred the amount from the netherlands to my NRO account instead of NRE. As I realized this today so I am now trying to get the money back in NRE account.
    Do you have any contacts of CA in Bangalore whom I can reach out for help?
    Any information related to this is much appreciated.
    Thanks in advance!
    Kind Regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) May 1, 2018 Reply

      While we do not have any contact in Bangalore, you may contact us as we do have clients in Bangalore and we serve clients all over India and from any part of the world. Thanks.

  151. I want to know that I paid money to builder for flat but builder not started the work but now after 2 years ready to pay money back. I paid the amount from nri account. he will give the cheque but I cannot put in nri account so I would be possible to put in normal account. I would like to know whether I have to pay tax for that amount or how to transfer back to nri account. Your advice is required.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) May 1, 2018 Reply

      Please get a letter from the builder that he is refunding the money from your booking on cancellation. You may use the letter to directly credit your NRE account. It is allowed. If not, the money will go to NRO account and after CA certificate in 15CB and filing of 15CA, you would be able to transfer funds from NRO to NRE account. Thanks.

  152. Dear Mr. Patel
    I have been facing tremendous issues transferring funds from my brother NRO account with HDFC, Ashram Road Branch Ahmedabad to his bank account in USA. Every officer is having a different opinion and it seems that none of them has a complete knowledge of transferring funds to foreign country. I have been making numerous visits and that leads to the severe frustration on my side.
    Well, I am a power of Attorney holder and filed it according to Bank’s requirement in its prescribed form.
    On my first visit I specifically asked them to provide complete procedure and documents required and accordingly I submitted the following forms:
    1. Application from for outward remittance from NRO Account, signed by my brother
    2. Form A2 signed by my brother
    3. A proof of source of funds.
    4. Form 15 CB from CA
    5. Form 15CA, duly printed and signed by my brother in duplicate.
    6. A copy of passport
    7. A copy of PAN card, recently obtained for funds transfer
    Every time I visit the branch to transfer funds they raise question and ask for revise/additional documents. Today the officer asked me to:
    1. Obtain CA certificate on their company letter head with the CA firm signature and stamp.
    2. Obtain signature and stamp of CA on both forms.
    3. A source of funds is a sales agreement of immovable property (sale of house) proof has a Xerox copy since the original is kept with buyer. They are insisting for the original one which is not possible.
    4. Even after submitting all above papers, HDFC Branch will send papers to their Foreign Department and transfer of funds will be made ONLY after their Foreign Department.
    5. Finally, they asked me to call my brother to India for transfer the funds as POA holder cannot transfer the funds, though all above forms are signed by my brother.
    This is ridiculous. I strongly believe that none of the officers has a thorough knowledge and asking me to submit/alter/revise or bring new additional papers.
    Finally after enormous search, I found you and writing my agony to you with a request to help me out. You are giving guidelines to many of your readers who are seeking help by responding them quickly.
    Awaiting your immediate help.
    Bharat Shah

  153. For NRO to NRE transfer or repatriation can you only transfer the interest or the principal also ?
    What type of money can be repatriated? Rbi website says NRO account money cannot be repatriated except for current income.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) May 2, 2018 Reply

      Both principal and interest can be transferred. Also, both current and past income can be remitted. Thanks.

  154. Hello Mr Naresh,
    I sold my stock in an Indian company and these have deposited in my NRO account. what is the process of moving this money (around $45K) to a US bank account?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) May 2, 2018 Reply

      As sale of stocks is a taxable transfer, a CA certificate in form 15CB and filing of form 15CA would be required. However, if you transacted through NRO PIS account, TDS may already be deducted. Please contact your CA or us for the transfer. Thanks.

  155. Sir,
    Recently i have sold a property in India and from the sale proceeds i am planning to purchase a property in USA. I would like to transfer the amount to Foreign account.Whether the sale proceeds are taxable or not in India.
    Kindly explain the procedure to transfer funds

    • The transfer from your Indian account to US account is not taxable. However, you may have to pay tax on the sale of property in India. Once you pay the tax in India, you are allowed to remit the funds to the USA. You would need to consider both India and US tax laws to efficiently plan your investments and amount that you want to remit. Thanks.

      • I would like to know, if the NRI wants to transfer the sale of property funds say Rs. 240000 from NRO to NRE Account. Do they require to pay any short term capital gaain in 15 cb. TDS is already been deducted of 1%. While filing the 15cb, we any tax be deducted in this case. The sale amount was around 3cr, but now left with 240000 which is now to be transferred to thailand. What will be the nature of the funds and what about the tax to be deducted. Please suggest.

        • 1% TDS is applicable when the property is sold by a resident. If an NRI is selling the property, the TDS rate is 20%. However, if you have paid the tax and filed your tax return, you may ask your CA to issue you a CA certificate in form 15CB and also file 15CA for remittance of funds to NRE account or to outside India. Thanks.

  156. Dear Jigar,
    I have NRO-OD account against NRO fixed deposits. Source of deposits is income earned outside India.
    Can I transfer funds from NRO-OD to NRO savings and then repatriate outside India for business purposes outside India or my personal use outside India?

    • No. The loan amount from NRO can not be remitted outside India. Instead, you may withdraw the FD, credit NRO and then using 15CB/15CA transfer your NRO funds outside India. Thanks.

  157. Hello,
    I am an NRI, i have received full year rental in advance for July-18 to June-19 Rs.12,00,000/- in my NRO account, to transfer this fund from NRO to NRE, to get 15CA/CB do i need to pay tax for Rental income of July-18 to Mar-19 (Rs.9,00,000/-) OR for full period
    Many thanks in advance

    • Any rent paid to NRI is subject to TDS @ 30.9%. Only after paying tax, you can transfer the funds to NRE after performing procedures of 15CB/15CA. Thanks.

  158. Hello Sir,
    I am reading your blog frequently as and when I require to guide my friends and relatives.
    My uncle having construction business, has purchased land, costing more than Rs.1.75 crores approx. from a person living in USA. Now the seller want his money there, in USD currency. What should be the exact procedure for remitting entire fund without any hurdles. Which papers bank may ask for remitting money.
    Please guide me accordingly..

    • Your uncle needs to deduct TDS and make payment with 15CB/15CA. He may also deduct TDS and pay to the seller in India’s bank account and then he would need to remit the funds to USA after 15CB/15CA. The bank would ask for the sale/purchase agreement, TDS certficate, 15CB/15CA and any other documents as required for their internal purposes. Thanks.

  159. Dear Sir,
    I have earned some profit from USA in trading in market and it is huge profit appx $40000 and for withdrawal of this profit there goverment asking me for payment of INLAND REVENUE TAX of around $8000 and I have paid the same, now the i can transfer my fund USA Bank account to indian saving bank account.
    I want to know that i have to also to require pay tax amount in india on my profit amount. if yes that how i can calculation on such amount of tax.
    Awaiting for your promot reply
    Thank You

    • 1. As you are an Indian Ordinary resident, your global income is taxed in India. Also, you need to report your foreign assets in your tax return every year.
      2. If you have paid tax in US, you would be able to claim the tax credit in your Indian tax return under DTAA – Double Tax Avoidance Agreement between India and USA. Thanks.

  160. how can I transfer 50 lkhs invested in nhai bonds to nre account on mayurity.
    the proceeds from property sale to save capital gains

    • The money will be credited to your NRO account. You can transfer funds to NRE account only after completing the procedures to transfer funds out of NRO account and filing form 15CB/15CA. Thanks.

  161. Greetings Mr Patel,
    I lived in UK & am British Citizen and hold OCI status.
    I have my PPF account (more than 15 yrs old) which is matured now and would like to close the PPF account and would like to bring the fund to UK. My PPF account is with SBI. I also holds NRE/ NRO account with the same SBI branch.
    What is the procedure/steps involved to perform above transaction.
    I’m coming India in 2 weeks time and would like to compete this activity.
    I believe there is NO tax implication against PPF account maturity.
    Please advise.
    Thank in advance
    CD Singh

    • 1. There is no tax on PPF.
      2. The maturity proceeds will be credited to NRO account only.
      3. While the PPF is not taxable, the bank would ask for CA certificate in form 15CB and filing of form 15CA for transfer of PPF funds to NRE account. Thanks.

  162. I get salary in India rupees and I need to transfer that to Overseas account.
    The ICICI NRO to NRE transfer also asked for tax payment proof apart from 15CA- part c. Now company will fill the tax at the year end so is there any way to get transaction without this proof.

    • While the company may file the tax at year end, the company may be deducting the TDS. If you can give proof that TDS has been deducted, it may be okay. If not, please ask Bank relationship manager to contact your CA to resolve the issue. Usually, a certificate/letter by CA may be sufficient. Thanks.

  163. Sir, I have seen your posts and leatned a lot regarding NRO, NRE accounts and transfer of money to relative. Could you kindly advice on the following :
    1. When my son was studying and working in USA, I have gifted my house as settlement deed. the rent on this house is 2,04,000 per annaum. he did not file income tax return.
    Now he become US citizen. He is showing the indian income in his US tax return. Now he become US citizen. Now, whether he has to pay tax in india for this rent income.
    2. I am an Indian resident. I have some immovable properties in India. My son and daughter are in US. Since I become old , i want to sell these properties and send them to US. which is the best leagal procedure. either change the property to their name and sell them or I will sell and gift the money to the. the value of the properties may 1.5 crore.
    Kindly guide me in this regard,
    Thank you

    • 1. As the house property is in India, you would need to file tax return in India first and pay tax. As a US resident for tax purpose, he would also need to include the India income in his US tax return. However he would not have to pay tax twice as he would be able to claim the foreign tax credit in his US tax return for any tax paid in India.
      2. I would recommend selling in your name and then transfer funds as there are many tax saving options available in India for you. Also, it will save you the stamp duty on registration of gift and make your kids’ compliance and reporting little less complicated. Please note there is no gift tax to your children if you give gift of money either in India or in USA. Thanks.

  164. I currently live in US and I have lent some money to a friend in India. I transferred the money from my NRE account to his domestic account. Now it is time for him to re-pay. May know what would be best way to receive the money back?
    my thoughts: If a family member collects cash from my friend, will that money become black? Or should I ask him to transfer money from his bank account to my bank account? (I also have NRO and domestic bank accounts).
    Please advice the best approach.

    • 1. As you gave money to your friend, it would be a loan and the repayment can only be credited to NRO account. Once in NRO, you would need to transfer the funds to NRE or in US after completing required procedures.
      2. Taking money in cash would make the transaction unofficial and should be avoided. Thanks.

  165. Dear Sir,
    I had an NRE FD. It was lean against an NRO OD account. When the NRE deposit reached the maturity date the NRE FD amount was credited to NRO OD account. I have not taken any over draft in the NRO OD account. I dont know why the credited to NRO OD account. Can you advice the procedure to transfer the NRO OD (NRE FD amount) amount to NRE account. Is this a mistake by bank.

    • Please follow up with the bank as they can not credit the NRO account on maturity unless an amount was outstanding in the NRO OD account. Even then, they have to first inform you and if you decide to renew the FD, the lien would also continue. So, it is important that you ask the bank what happened. If bank’s mistake, you may ask them to credit the NRE account. If not, you would need to follow bank procedures to transfer the funds from NRO to NRE.
      You may file a complaint and also approach bank ombudsman for the same. Practically, it may not help you a lot but would make bank personnel accountable and may reimburse you for any expenses that you may have to incur for transferring money from NRO to NRE. Good luck. Thanks.

        Dear Sir,
        I am NRI and having NRO and NRE Saving bank accounts in India. I want to transfer my fund in NRO account to my NRE account in the same bank. As per CBDT notification, NO 93/2015 dated 16th December 2015 effective from 01.04.2016 FORM 15CA and or 15CB is not required. However, the bank asking for FORM 15CA and 15CB.
        I have gone through various rules and notifications of RBI and CBDT as per these provisions
        Transfers/ remittances from NRO Accounts to NRE accounts for the specified 33 purposes covered under CBDT Notification No 93/2015 dated 16/12/2015 not taxable and certificates 15CA and/or 15CB are not required.
        But some of the banks do insist for such certificates from CA and account holder/remitter.
        Generally, banks ask for submitting 15CA/CB certificates even if they are not required as per rule. The bank takes this position and justifies that due to strict penalties and disclosures required by RBI and banks don’t want to take chance. When banks insist for these unnecessary and required certificates, account holders have no choice but to submit these certificates to banks so that they transfer funds from NRO to NRE.
        What is the correct position? Is there confusion in circulars/notifications of RBI/CBDT?. Which authority should clarify the correct rule position? Any good article clarifying correct rule position. How should I proceed to transfer the balance from NRO to NRE account in the same bank?
        kindly guide me on this matter. I would like to know the correct requirement as per rules and regulations
        With regards,

        • As the bank needs to verify whether the tax has been paid on the funds in the NRO account, it is required. It may be because of interest, rent, capital gain or business income, which are all income taxable in nature. So, I would recommend that you contact your CA for 15CB/15CA and complete the procedures. Thanks.

          • In my view and in the views of may experts including CAs and many individual bank officials for transfer of funds from own NRO Account to own NRE NOR CA/15CB is not required . But for some reasons such certificates are insisted upon.
            In such situation there will be no remittance wherein not certificate will be required .

          • RBI has given responsibility of ensuring tax compliance to bank and bank would only transfer if they receive a certificate from CA. Also, unless the funds originated out of India and TDS deducted (money remitted from out of India to a bank in India in NRO accoount and TDS deducted by bank), there is no way to know for bank whether tax, if any, has been paid. So, it is recommended to pay tax, file tax return and contact CA for certificate. Thanks.

  166. Dear Dr.Patel,
    I am a NRI. I have NRE FD. I am thinking of surrendering NRI status & coming back to India. I have not taken a final decision yet. I require guidance on the following:
    1. If I intimate the bank of approval of surrender of Green Card, will the bank continue the NRE FD till its maturity? The TDS may be applicable from after surrender of GC.
    2. Is there any RBI guidelines how the NRE FD should be treated in such cases?
    3. If the bank ask me close the FD, I would loose interests paid for part of the year as NRE FD has to be minimum for one year.
    Thanking you,

    • 1. Thank you but I am not a Dr. I do not have a Ph.D. qualification.
      2. Surrender of GC has nothing to do with residential status. You may surrender a GC, get other VISA and stay out of India. GC is an immigration issue. Taxation is determined by the residential status.
      3. Only on your physical return to India, you need to inform your bank that now your status has changed to resident.
      4. As per FEMA laws, you become a resident on your return. And, as only NRIs are allowed to have NRE account, you become ineligible to own and operate an NRE account. There is no clear guidelines about the same. In our experience, banks have been treating this differently. Some banks allow NRE FDs to continue, whereas some banks asks to close the account immediately.
      5. Yes, NRE FD interest is paid only if FD not prematurely withdrawn within 1 year. Thanks.

  167. Dear Sir,
    Can you clarify this for me. I was an NRI for 15 years and now become a resident. I have some NRO deposits. All NRO principal amount was earned abroad.
    (a) Is it possible to convert NRO deposits to RFC deposits ? If so what proof do I need to show ?
    (b) If it has to be converted to only resident deposits, In future if I become an NRI, is it possible to repatriate the Principal amount from these deposits ?

    • 1. No. Only NRE funds can be transferred to RFC account. If you had transferred the funds from NRO to NRE before you became an NRI, it would be possible. You need to understand the concept. As an Indian resident, you have limited access to forex. As an NRI, it is allowed, however, the money needs to be repatriable – either FCNR or in NRE account. So while as a resident, you can have RFC and transfer limited amount, as an NRI becoming resident, you have no limit.
      2. Yes, when you become an NRI, your resident account would become NRO and from there, you can transfer upto $1million per year to NRE account. Thanks.

  168. Dear Jigar, I am an Australian citizen and residing in Australia for last many years. I am planning to come back to India for few years and will start working there in those years. I have NRO and NRI account in India. Can I get remuneration there in India in NRO account and can then transfer to NRI account while I am there in India.

    • As an Indian resident, you are not allowed to have NRO / NRE account and can only have resident account. Once you move back to Australia, you can have those funds in the NRO account. Thereafter, you will be able to transfer from NRO to NRE after CA certificate in form 15CB and filing form 15CA. Thanks.

  169. Hi,
    I am an NRI and need funds for my two son’s education abroad. I am planning to mortgage my property in India to get the funds and want to transfer them to the universities directly or to my account. All documents of admission and evidences can be provided. How do I transfer the loan as it will be credited to my NRO account?

    • As per RBI/FEMA rules, an NRI is not allowed to remit borrowed funds out of India. However, you can sell the property and remit the funds after payment of tax. Also, your resident parents/siblings may give gift to you. Thanks.

  170. I am OCI holder and live in Belgium. I have NRE and NRO accounts in india. I have following question regarding inheritance/gift tax:
    Do I need to pay any taxes on FD (Fixed deposits) which I receive from my parents as inheritance or as gift in India? If I want to transfer those FD amount to my NRE account.
    Thank you

    • There is no gift on inheritance money in India. I am not sure but I don’t think you need to pay tax on the inheritance received in Belgium. However, any interest on the inheritance FD would be taxed in India and in Belgium. Please contact us to structure your investments in India that is most tax efficient in your case. Thanks.

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