How to Transfer Funds from NRO to NRE Account
NRIs (Non Resident Indians) may transfer funds from the Non-Resident Ordinary Account (NRO) to Non-Resident External Account (NRE).
The Reserve Bank of India (RBI) permitted NRO to NRE fund transfer subject to payment of applicable taxes within the overall ceiling of $ 1 million in a financial year.
The NRO account is mainly for depositing Indian incomes like dividends, rent or incomes through any investment or sale of property. In case of NRO account both non-resident and resident can become joint account holders.
The NRE account is mainly for depositing income from abroad. In case of NRE account, only NRIs can become joint account holders.
When you can Transfer Funds from NRO to NRE Account
- An NRI can transfer funds from NRO to NRE account only if the amount is within USD 1 million in a financial year. The amount/limit is the maximum.
- Transfer of funds from NRO to NRE account is subject to payment of applicable taxes. Only if the taxes are clear you can move funds
- The source of funds in the NRO account should be transferable/ repatriable
Document Requirements for Transfer of Funds from NRO to NRE
For transfer of funds from NRO to NRE account, NRIs need to submit Form 15CA (online application form) and form 15CB (Chartered Accountant Application) to the bank branch.
Form 15CB is to be filed by CA(Chartered Accountant) which is to be acceted by the person and
Form 15CA is to be filed by the person based on form 15CB
These forms are filed online on Incometaxindiaefiling.gov.in
Chartered Accountant will certify that you have paid Income taxe / TDS on the money being transferred to NRE account.