SBI For transfer of funds from NRO to NRE account

Based on the document provided, here are the key points regarding the SBI Request for transfer of funds from NRO to NRE (Form NRI-10.2):

Purpose and Basic Requirements

• Transaction: This form is used to request a debit from an NRO savings account and a corresponding credit to an NRE savings account.

• Repatriation Limit: Applicants must declare that the total funds repatriated during the current financial year, including the current request, are within the USD one million annual limit prescribed by the RBI under FEMA.

• Source of Funds: The remittance must come from legitimate receivables in India and cannot be funded by borrowing from others or transfers from other NRO accounts.

Tax Compliance and Documentation

The documentation required depends on whether the amount is “Chargeable to Tax” and the total value of transfers in the financial year:

• Not Chargeable to Tax:

  • If the purpose is one of the 33 listed in “Table A,” no specific tax form is mentioned.

  • If the purpose is not in Table A, Part D of Form 15CA is required.

• Chargeable to Tax:

  • Up to ₹5,00,000: Requires Part A of Form 15CA.

  • Above ₹5,00,000: Requires Part B of Form 15CA (if an Assessing Officer’s order/certificate is obtained) or Part C of Form 15CA and Form 15CB from a Chartered Accountant.

Transfer Categories (Table A)

The form includes a comprehensive list of “Nature of payment” codes (S0001 to S1503) for various purposes, such as:

• Investments: Equity, debt, real estate, or branches abroad.

• Travel and Education: Business travel, medical treatment, or education fees and hostel expenses.

• Personal/Maintenance: Remittances for family maintenance, savings, gifts, and donations to religious institutions.

   

Special Provisions for Immovable Property

• Specific Annexure: If the transfer involves sale proceeds of immovable property, a separate “Undertaking” annexure must be submitted.

   

• Residential Property Limits: For residential property, repatriation of sale proceeds is limited to a maximum of two such properties.

   

• Acquisition Rules: The applicant must declare if the property was acquired using local resident funds, inheritance, or foreign exchange (through banking channels or NRE/FCNR accounts).

Legal Declarations

• FEMA Compliance: The user must declare the transaction does not contravene or evade any provisions of the Foreign Exchange Management Act (FEMA), 1999.

• Indemnity: The applicant agrees to indemnify State Bank of India against any tax, interest, or penalties levied by authorities due to non-compliance or non-deduction of tax.