6 comments

  1. Is this viable to transfer the whole amount from NRO Account to NRE account (that includes Principle + Interest). If this is yes, some queries below are requested to clarify on the same context:
    – can you brief down the tax implications and bank charges considering both accounts exists from the same bank?
    – Are there any limitations or time brackets on flowing the funds from NRO to NRE, considering there are recurring fund flows into NRO, (lets say monthly rentals).
    – I recently invested in the mutual fund on bulk investment from NRE account and happened to cancel for some reasons, however the fund house returned the fund to my NRO account. Is this right by flow – how to manage this?
    – I filled the income tax on my earning through NRE account (Stock, MF etc), when I get the tax refund it is being deposited to my NRO account. Is this right by flow?

    1. Thank you for your detailed queries. Here’s a quick clarification:

      Full Transfer (Principal + Interest): Yes, it’s possible if the funds are repatriable and supported by Form 15CA/15CB certification.
      Tax and Bank Charges: Tax on NRO interest applies, and bank charges vary—check with your bank for specifics.
      Recurring Fund Flow Limitations: Transfers can be done periodically, but ensure compliance with FEMA guidelines for each transfer.
      MF Redemption to NRO Account: Fund houses generally credit redemptions to the source account. To correct this, consult your bank or mutual fund provider for a transfer.
      Tax Refund to NRO Account: Yes, tax refunds are credited to NRO accounts as they are linked to Indian earnings. For further management, consult a tax advisor.
      I hope this helps! Let me know if you need further clarification.

  2. You are simply telling Nro to Nre tr which is in reality very difficult. You have not told the relevant rules and terms and conditions for such transfer. It is misguidance. Consulting tax practitioner is a must as he has.to certify certain items of credit in nro account Banker will also impose certain conditions. As such your headline or core of the mail is misleading to NRI

    1. Thank you for your feedback. The article aims to provide a general overview of NRO to NRE transfers, but I agree it could emphasize the complexities and compliance requirements more clearly. Consulting a tax practitioner is indeed essential, as banks require certifications like Form 15CA/15CB and adherence to FEMA guidelines.

    1. It is not mandatory to have an NRO or NRE account while working abroad, but it is advisable. As per FEMA regulations, NRIs must convert their Indian resident savings accounts to NRO accounts. An NRE account allows you to park foreign earnings in India tax-free and repatriate funds freely. An NRO account is for managing income earned in India, like rent or dividends, with limited repatriation. These accounts ensure compliance, simplify fund management, and offer tax benefits.

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