RBI allows transfer from NRO to NRE account

As per RBI’s notification RBI/2011-12/536 dated May 7, 2012, NRIs are eligible to transfer funds from NRO account to NRE account within the overall ceiling of USD one million per financial year subject to payment of tax. Such credit of funds to NRE account shall be treated as eligible credit.

I believe it is really helpful for both Indian Government and NRIs. 

Indian Government:
Bank FD interest on NRE and NRO are same around 9.5%; however, interest on NRE FD is TAX FREE whereas NRO FD is TAXABLE. As NRIs may not get any interest if FDs are withdrawn before 1 year, they have no choice but to keep money in NRO FD. However, on completion of 1 year, NRIs will not keep invested in NRO FD but will rush to break FDs to remit money out of India for investing back in NRE FD. And, money once gone, may not return. This will drive demand for dollar and could accelerate rupee depreciation. So, to stop that and keep money in India, RBI allowed transfer of money from NRO to NRE.

While it is helpful to Indian Government, it is more beneficial to NRIs. Following are the key 5 benefits to NRIs:
1. Save transaction cost: No need to transfer money from NRO to foreign currency and from foreign currency to NRE if you want to transfer funds from NRO to NRE for taxfree interest

2. Increase your return: Interest on NRO is taxable in India whereas interest on NRE FD is tax free in India, saving tax of 15-30% and no TDS based on DTAA rates.

3. No TDS, No need for Tax Residency Certificate (TRC) (introduced in Finance bill 2012 for TDS on NRO funds at DTAA rates) and no need to file Income Tax return in India as interest on NRE FD and bank accounts are tax free in India

4. You decide when and how much you transfer your funds out of India: Currently, whenever you want your funds back out of NRO, you file Form 15CA, get CA certificate in 15CB and then after completing procedures, remit funds. You may follow the same process for transferring from NRO to NRE but you have full freedom to transfer money out of NRE account whenever you want in future be it partial or full and whether next day, month or year.

5. Limit: There is an overall ceiling of $1M for remittance out of NRO per year. The limit also apply for transfer from NRO to NRE but you don’t need to convert them in foreign currency immediately and keep funds in NRE account. There is no limit for remittance out of NRE account. So after 5 years, when you think foreign exchange is in your favour e.g. Rs40/$, you can convert all $5 million, significantly improving your return.

Please also review related blogs about “Understand Tax Drag and why transfer” and “Procedures for Transferring funds from NRO to NRE”.

Category: Investments in India, NRI Investments, NRI Taxation, NRO to NRE Transfer, RBI / FEMA / Other Updates - Analyzed, Wealth Management Tags: , , , , , , , , , , , , , , , , , ,


  • Rajiv

    Could you please let me know whether you could do the needful for my NRO and NRE account with a SBI Branch in Haryana? Please mail me at r____@gmail.com

    • Rita Vijay

      Dear Mr. Jigar Patel
      Please advise me regarding my NRO Fixed Deposit Tax Deduction.
      My Principal Amount was Rs. 29,54,550/- Maturity Amount Rs. 37,94,389/-
      duration of FD 1000 days at the rate of 9.25 % .
      The Bank has given me Rs. 36,01,000/- . As I am residing in Kuwait according to DTAA , I am supposed to pay 10 % Tax on my interest (Every year I have submitted my DTAA and PAN card details also) but I feel they have deducted much more than 10 % .
      Kindly tell me how much amount should I get after Tax Deduction.
      Thanks and regards

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

        While India and Kuwait has DTAA, you may not be able to get the benefit as since last 2 years, TRC (Tax Residency Certificate) would be required to get the DTAA benefit of 10%. Unfortunately, NRIs from GCC countries, where there is no income tax, TRC may not be issued and as a result, you may not claim the DTAA benefit of TDS @ 10%. In your case, TDS @ 30.9% (30% tax + cess) would be deducted. Without the exact date of FD, I may not be able to calculate the exact amount. You may also ask the bank to provide the details and the TDS certificates. Please note that, you may claim the refund of any additional tax deducted by bank back from the income tax department after filing your tax return. The last day of filing tax return for the financial year 2011-2012 is March 31, 2014. Let us know if you want our help in this. Thanks.

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

    Please see my another blog that explains why NRIs should transfer funds from NRO to NRE account http://nareshco.com/blog/?p=229

  • mo

    I have some NRO FDs in a bank. I wish to take advantage of the allowance by RBI to transfer money from NRO FD to NRE FD. My deposits are yet to mature but have already run for 2 yrs. How can I convert the NRO FD’s to NRE FD?
    Please let me know the process and forms that need to be filled in.

    Thanks and regards,

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

      The process and form will depend on the bank with which you have NRO FD. Normally, you can not convert your NRO FD into NRE FD. You have to break NRO FD and transfer balance into NRO savings account. Thereafter, you need to obtain a certificate from Chartered Accountant in Form 15CB and submit Form 15CA. Only on submission of 15CA, 15CB, application and other forms depending on the bank and NRO check (cheque), you can transfer the funds. Thanks for reading our blog and posting comment.

  • shanky

    Hi Jigar,

    Nice article. Two queries:

    You mentioned – “However, on completion of 1 year, NRIs will not keep invested in NRO FD but will rush to break FDs to remit money out of India for investing back in NRE FD”
    How is this possible. NRO deposits are non-reptraiable i.e. cannot be moved out of
    The only way we can move funds from NRO is convert the funds into $ currency/DD for moving out to a foreign bank account and then remitting it back to NRE Rupee account or Foreign currency ($ account) account in India.

    2. Currently under the new regulation, do I need to furnish Form 15 CA, CB for moving my money from NRO to NRE even if its within the limit of USD 1m?


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

      Shanky, Thanks for your comments. See below for my answers.
      1. NRO funds upto $1 million can be remitted abroad. Had RBI not allowed transfer from NRO to NRE, a lot of NRIs would have remitted abroad and again remitted from abroad to NRE account to earn tax free return. There is no point of keeping money in NRO account earning same return as NRE and pay tax or deal with banks for TDS, TDS certificates, Income Tax Returns, whether TDS is showing in 26AS, etc.
      2. RBI allow NRIs to remit funds abroad upto US $1 million per year. 15CA/CB is required to confirm and/or verify that remittances do not exceed $1 million. You CAN NOT remit more than $1 million per year from NRO account.

  • shanky

    Hi Jigar,

    Yes I understand, allowing tranfer to NRE account means you keep the deposit in rupees, meaning you dont sell INR to buy USD (which would devalue the currency even further).

    I was under the impression that the funds in NRO are non-repatriable. Atleast, that is what I have been told by the banks in India. Also, I was under the understanding that the 1m$ ceiling we are talking about applied to transfer from NRO to NRE account and not for remittance from NRO to abroad, as stated in the RBI circular dated 7/5/12


    A couple of more queries:

    1. Do you suggest filing the form 15 CA/B online on

    Banks do want to see Form 15CA, CB before they can move the money from my NRO to NRE

    2. If I am an NRI and have a rupee fixed deposit with a bank and the interest amount has been taxed already at the statutory 10%, do you think when I move the money from NRO to NRE account, do I need to pay any additional taxes?


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

      Hi Shanky,
      1. Please read the notification, benefit #4 and #5 twice to understand the changes from the notification.
      2. Form 15CB to be obtained from a Chartered Accountant in physical form (It is a certificate signed by CA). Form 15CA must be filed online by you and then printed and signed. Both 15CB and 15CA to be submitted to bank for transfer
      3. While you may be in 10% tax bracket, TDS on interest in your case from April 1, 2012 (assuming you have not submitted TRC to bank) would be 30.9%. You may claim the difference but for that you need to file tax return in India and refund will take about a year or more.
      4. There is no additional tax on transfer of funds from NRO to NRE.

  • shanky

    Hi Jigar,
    1. Yes, I understood benefit #4 and #5. In fact I have already thought about making use of #5 as USD has appreciated at the moment and domestic deposit rates are high. In a few years time when rupee starts to appreciate, it makes sense to repatriate it significantly increase the return. (say $100, convert today at 55, deposit for 2 years at 10% and repatriate it back at 40 Rs/$ will give you approx 32.5% return)

    2. I had a fixed deposit that paid me an interest of Rs. 3 lakhs. Tax has been deducted at source already at 10% i.e. 30k. I will be filing a return next year with deductions under 80C to claim this 30k back fully from IT department. The question I had was whether there will be any tax/charges at the time of repatriation of the funds to a foreign account i.e say when $ is around 40 rs in the above example?

    Thanks for your replies and insights.


  • RBI allows transfer from NRO to NRE account 3: Procedures for Transferring funds | Naresh J. Patel & Co, Chartered Accountants

    […] 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. […]

  • Jigar Parekh

    Dear jigarbhai

    Nice to read your article, it’s very informative.


    transferring fund from NRO to NRE can only be done with the funds lying in NRO FD or can NRI also do the same with the MF investments done with NRO status?

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

      Transfer is from NRO bank account to NRE bank account. Sale proceeds of MF investments credited to NRO account are also eligible for conversion into NRE account subject to conditions.

  • Jigar Parekh


  • saty

    Dear Jigar,

    1. Is it advisable to transfer funds by breaking the FD?
    2. Does SBI charge any transfer fees?
    3. How fast will the bank transfer it?
    4. Where can i get Form CA & Form CB?
    5. if FD broken before maturity will it be still taxed?
    6. I have given a self declaration on NRO a/c to SBI about DTAA, what will be my TDS?

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

      Dear Sat,

      Thanks for leaving a comment.

      1. For most of investors, Yes. However, in your case, I can suggest only after looking at your situation.
      2. SBI does not charge any transfer fees. However, there may or may not be penalty for pre-mature withdrawal of FD.
      3. Transfer completed on the same day bank receives Form 15CB, 15CA and request letter or any other documents, if required.
      4. Form 15 CB – Get it from Chartered Accountant, Form 15CA – to be filed online at http://www.tin.nsdl.com
      5. Interest until breaking FD calculated and TDS deducted on the interest.
      6. From 2012-13, self declaration may not be sufficient. TRC – Tax residency Certificate may be required to deduct TDS at DTAA rates. Please contact your bank for details

      Let me know if you have any question.


  • Gaurav Jain

    Dear Jigar,

    If a NRI wants to engage in Futures trading, then broker has told me it is done by transferring funds from NRE account to NRO to broker account and vice versa to transfer funds back overseas. Now, is the money earned from Futures trading taxable in India? I will be transferring funds back to Australia so question is if income earned is taxable in India, will I have to pay tax again in Australia? I have heard of Double Taxation Avoidance treaty between India and Australia but I am not sure it it applies here.


  • Jagdish

    Dear Jigar,

    Firstly, thank you very much for crating this informative blog which is providing very very useful information about transfer of NRO to NRE and also for the responses given by you against the queries raised. I do have one query as under :

    I am holding NRE and NRO account with State Bank of India. Till today, what i have done is i have sent all money from abroad to my NRE saving account only and made all NRO FD’s. NRO FD’s were made by SBI by transffering money from my NRE saving account and not from any other account / source.

    Now, i want to transfer money from NRO FD’s to NRE FD’s. Considering the fact that my NRO FD’s were made by transferring money from my NRE account only and even, SBI can also verify the same at their end from my NRE saving account transaction details; do i have to submit form 15CA and 15CB ? Is it mandatory to submit form 15CA and 15CB OR i have to submit only signed FEMA declaration and Undertaking to SBI ?

    Please reply as soon as possible.


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

      Dear Jagdish,

      For transferring money from NRO to NRE, it is mandatory to submit 15CA and 15CB as there is no restriction on remittance out of NRE account. You need to follow procedures as if you are transferring money out of India.

      Thanks for your comment. I really appreciate it.


    Dear Jigar,
    First of all thanks a lot for such a wonderful article.
    I have read somewhere that for Form 15CB, the remittor and benificiary need sot be be different person. However if one transfer funds from NRO A/c from NRE A/c which are in the same bank, then both remittor and beneficiary will be the same person. In such case how will the form be filled?



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

      There is no such requirement. Anyway, you do not have to worry as your CA will know how to fill up the 15CB.
      Thanks for your comment.

  • satyen

    Dear Jigar,

    I hope Form 15CB will be filled by my CA.
    I have gone through the forms online and found it little difficult to fill Form 15 CA.

    Part B of the form – Amount of remittance in foreign currency as i have repatriated the funds long ago.
    Amount of TDS / Rate of TDS / amount of remittance after TDS etc.
    also points 12 to 16 are confusing. (I am in Oman & a salaried person)
    Can you help.?

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

      Hi Satyen,

      If you read carefully, Part B is to be completed based on 15CB issued by CA. So, do not worry. You may also ask your CA to fill up Form 15CA on your behalf in a template and after review, you fill it online accordingly.

      I hope this was helpful.


  • saty

    Thanks a lot.

  • Harish

    Can you provide some guidelines how to repatriate INR to USD from NRE account.
    I tried moving money from NRO to NRE and ICICI Bank doesn’t allow. Have the banks already implemented the rule that was introduced in May 2012 for moving money from NRO to NRE?

    Appreciate your comments.



  • Krishna

    I want to sell a property after holding it for 10 years and want to use the money to pay part of my Overdraft loan (against NRE-FD). What is the best way to do it? Can I directly deposit it to my Overdraft current a/c?

    Since I would be using the income generated to pay off another loan, are there any any tax implications? Any form like 15ca/cb to be filled (assuming I use NRO a/c)?


  • Rajan

    I am an NRI US citizen. Recently I inherited Rs 1. crore from the sale of family property towards my share . Out of this amount I have invested Rs 50 lakhs in Capital Gains account with REC Bonds and The balance Rs 50 Lakhs are in my NRO savings account with a Bank in India . I have also paid Income tax on the Income from the proceeds of my share of the property. I would like to transfer Rs 50 lakhs in my NRO account to a NEW NRE account which I shall open .
    My question is any tax ie applicable on the proposed Transfer . Please advise

  • KVR Jain

    Hi Jigar,

    I have kept some amount as fixed deposit in my fathers name in India.

    I have both NRE & NRO a/c. Can i transfer the amount from my fathers normal s/b a/c to my NRO a/c & then transfer it to my NRE a/c for a fixed deposit.

    Your quick resonse is higly appreciated.



    i have a fd in sbi nro account now i have to transfer fd from nro to nre i have filed the 15 ca form i want to know my nro & nre bank are same so the form i filed up the information of remitance that address should be the ass who stays in dubai the remiter and remitance address should of dubai only particulars of remitance and tds sbi bank or wat pls help me out my fd is going to mature in 29-07-2014


  • prahallad behera

    I am currently staying in US and have an NRE account in India.Is there any such limit to transfer USD to my NRE account?

  • Dipen

    Hi Jigar,

    At present US $ is getting stronger (almost Rs.60). Is it good time to convert Resident bank account into NRO and then NRE account? Do I need to break my FDs held in Resident bank account to convert into NRO account?

    Thanks in advance,

  • Vishal

    Dear sir,

    I would like to get my NRO funds converted to NRE funds and would like to use your services to assist me.
    Currently I am paying TDS at 15% (Canada) and was wondering what the TDS rate would be if I break my FD (i do not have the residency certificate). Would I have to pay 30% since the beginning of my FD, or would it be from May 2012 when the new bill was introduced in the budget?
    Thank you for your help.

  • SK Arora

    Dear Sir
    Some time back I transfered my salary earned abroad to my savings account with SBI & this account was converted to NRO account. Major portion of this money ( money remitted from abroad ) was put in a NRO FD. In case I break my NRO FD and transfer funds to my NRE account & if intrest earned for FY 2012-13 on NRO FD is less than 2 lacs in India and there is no other income in India, can 30% TDS deducted by bank be claimed back by filing return in India.

  • akhtar


    I have saving account in ICICI Bank And transfer money from oman more than 7 lakhs is it possible
    or open NRI Account.

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

      Yes, you can open both NRO and NRE account with ICICI or any other bank.

  • kaushlendra kumar

    First of all thanks for this Article.

    Plz let me know after notification 67/2013, it is necessary to file 15CA & 15CB to convert NRO to NRE A/C. If no then what is the procedure to convert the same.

  • Sankar

    I transferring my monthly salary through exchange from Dubai to my SB a/c in India. If I send more than 10 Lakhs to my SB A/c was Taxable by IT.

  • Dominic

    Hi Jigar

    Can I transfer my NRE Fixed Deposits proceeds , maturing after my return to India,(after my becoming Resident Indaian) to my son’s NRE Account who continues to be NRI ?

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

      You can transfer your funds in NRE account to RFC account on return to India. And, you can transfer the funds in RFC account to your son’s NRE account as a Gift. Thanks.

  • Francis Edwin

    Dear Sir

    I am given to understand that conversion of NRO FD fully funded from abroad does not need to go through the 15ca / 15cb route. It is only if amounts in the NRO account have been funded locally that one needs to use the two forms. ICICI also does not need 15ca/cb for such a transaction. Please enlighten me as most Branches have never seen a single transaction of such nature thus far. Pl see point 2 of Documents Required in the following ICICI format http://www.icicibank.com/nri-banking/pdf/Request_Letter_for_Transfer_29.pdf.

    Thanks. F Edwin

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

      It is great that ICICI has agreed for no documentation for NRO to NRE transfer for FDs made out of NRE funds. This will solve many issues. My interpretation of the CBDT circular is that 15CB/15CA not required for any NRO to NRE transfer provided the funds for family maintenance and savings as it is included in the specified list, as a customer, you are at the mercy of the bank as they have the power. You may try to convince them 15CB/15CA not required but if they are adamant, you may have to give as it is you who want to move money from NRO to NRE. Please check my blog “15CA/CB rules revised Again: 15CA/CB May NOT be required for NRO to NRE transfer” and 140+ comments. Thanks.

  • poornima

    I came to know that recently RBI has sent circular regarding NRO account holders that they cannot receive any overseas amt or withdraw any amt from their account till election i.e 12th may. Is it true?

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

      I am not aware of such circular. I don’t think RBI can limit withdrawal from bank account. Instead, they may ask if caught with cash to prove the source and if you explain and has proof that it was withdrawn from bank, it would be okay. Anyway, if you know such circular, please email it to me at jigar@nareshco.com. Thanks.

  • sharma dk

    whether form a-2 also to be submitted in the Bank while getting my funds transferred from nro to nre a/c?

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

      Form A2 is just an application cum declaration by the person is usually required for any transfer / remittances out of India. As NRO to NRE transfer may also be regarded as transfer out of India as there is no restrictions/limits on transfer of NRE funds abroad, It may be required. It just tells bank the reason/nature of transfer, that it is within limit and as per RBI/FEMA and there is nothing to worry about. Thanks.

  • Ram Garg

    Dear Mr Patel,

    I receive regular pension for 20 years of service with Punjab State Electricity Board in my NRO account for which PSEB deducts Tax if justified for payments made to me. Do I need to process forms 15 CA/CB. I have regular tax returns filed and assessed under my PAN. Please advise the process to convince my bank for NRO to NRE repatriation of my pension and matured PPF amount after 15 years.

    Thanks & Regards

    Ram Garg
    Retired Electrical Engineer
    B. Tech Hons IIT Khaagpur
    Melbourne Australia

    NB: I have dual citizenship of both Australia and India.
    For last 24 years in Australia I used up my pension in India but I need these monies now for family welfare and medical expenses.

  • Leena Aggarwal

    Dear Sir,

    Pls resolve my query too. As per Foreign Exchange Management ( Borrowing or lending in foreign exchange) Regulations, 2000, an individual resident Indian can borrow money from his close relative outside India subject to following conditions:

    1. Borrowings shall not exceed US$ 2,50,000 or its equivalent in foreign exchange.
    2. the loan is free of interest.
    3. the minimum maturity period of the loan is One year.
    4. The amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR(B) account of the non-resident lender.

    My question is Can Resident Indian repay loan in foreign currency and through which account.

    Pls tell me the whole process.

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

      A resident Indian having foreign currency usually maintains RFC (Resident Foreign Currency) or EEFC (Exchange Earners Foreign Currency) accounts. While EEFC is mainly for business transactions (exporters), RFC is for other residents. For payment, there is no requirement to pay in foreign currency. A resident may pay in INR and as the loan would be on repatriable basis, NRI would be able to credit the repayment in the NRE account and remit the funds outside India. Thanks.

  • Maha

    Hello Mr. Jigar,
    I have similar question, can you pls advise me :
    I am working in Dubai, and applied for the loan of 30Lakhs, I would like to use this funds to repay my personal loan(to relatives) and want to buy a land with left out money. I have two option – which is good interms of tax implication :
    either I can send money to my mother SB account directly or
    I can open an NRE account in india and send money to NRE account and later I can do online transfer to mother SB account. Later she can withdraw 30Lk amount.[ mother has pan card and has pension account but didnt file any return as annual income is less than 60K p a]. as this is big amount transacting in her account, is there any tax implication – will she get any tax notice ? does this deposit considered as her income? does she need to pay tax later? I just got confused, can you pls advise… which is the best method?

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

      1. Remitting money to India, Transferring money within India, withdrawing money out of bank account do not attract income tax.
      2. If a large amount (10 lakhs+) of cash deposited/withdrawn from your savings bank account, income tax department would know of such transactions and may inquire why and for what purpose. If you or your mother has not been filing taxes, I would not recommend using cash for paying of debt or loan but instead, use cheque/ bank transfers.
      3. It is your internal matter, in whose name you want to invest. You may transfer funds in your NRE and invest in your name. You may also transfer the funds to your mother as a gift and she can invest in her name. Thanks.

      • Maha

        Thanks Jiger, One clarification on #2 and #3
        #2 – you asked to use cheque instead of cash – does this mean my mother should use the SB account cheque.(after I transferred funds to my mother from my NRE account). Ido file a tax return every year.
        #3 – with regard to Gift – how do I show this as gift, is there any separate process or just a description while transferring money through bank.
        #can I transfer money directly from exchange to mother SB account or open NRE account- transfer exchange to NRE – transfer NRE to mother SB account. – which is safe.

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

          2. Transfer from your account to your mothers would be either loan or gift. I always suggest, whenever possible, use cheque.
          3. For gift, I recommend to have a gift letter that includes PAN and signature of both and make a note while filing tax return of your mother that she has received gift from you.
          4. Both are safe. Make sure there is a trail of funds from your account to hers.

  • arvind vyas

    Dear Sir,
    What is the consultancy charges, for NRO to NRE conversion, form 15CA and 15 CB and related work in this.

    • Vineet Kumar Gupta

      Dear Mr. Arvind
      There is no fixed charges for it and vary case to case basis. Also, how renowned is your CA ?
      If you know a CA personally, he will be more comfortable to do it for you, otherwise, he may ask much more details to prove that money you are trying to transfer from NRO to NRE is already tax paid.
      I approach many CAs, they were either unaware about it or hesitant, as onus is on them to verify that tax is already paid. Subsequently, I could manage to find a good CA thru a contact, who charged very reasonable fee.

      • arvind vyas

        Dear Sir,
        Thanks for reply.
        My case is such. I paid ICICIprilife first premium in 2008 of 6 lacs. I paid my Dhs cheque to Asia Exchane (now closed) and Asia exchange given DD to ICICI Prulife in Dubai. ICICIprulife gave me my form in which DD number mentioned with date and from Asia Exchange, Dubai UAE. Later on when policy surrendered they asked me proof of source (that it is NRE). I could not produce any thing except their own statement submitted to me (above DD details, no copy of DD available). For all other premium I had NRE bank statement hence for those there was no problem. After so many arguments, they paid this amount is NRO and deposited in Axis bank. Now Axis bank is saying this NRO not possible to converted into NRE. Even CA gives 15Ca and 15 CB form. Please help me out. I have NRI status for last 22 years.
        Best regards

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

          1. If you give the DD (Bank Draft) of a foreign currency exchange to ICICI Prulife in Dubai, I think it should be proof enough that the payment is made in convertible foreign exchange (or NRE).
          2. Please follow up with Axis bank why it is not possible. Ask your CA to communicate/liaison with the bank.
          3. If you still have any trouble, let me know. Thanks.

          • arvind vyas

            Thanks for your reply sir. But you have not understood, I paid UAE Dhs to Asia Exchange in Abu Dhabi but what DD Asia Exchange is issues to ICICI Prulife, that I don’t know. They have only put DD statement in first application (as DD number, amount, date and Asia Exchange Dubai UAE) form and not submitted DD to me. ICICI prolife said that Asia Exchange issued DD from India, without any proof. No idea what is this, Asia exchange is closed permanently. This is 2008 case.
            Best regards
            Arvind vyas

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

            Only one thing can happen; either you convince them to credit NRE or they convince you that funds will be paid to NRO. If you can’t prove and they don’t have any documentation or do not accept your explanation, and if money is already in the NRO, nothing can be done. You would need to follow procedures to transfer funds from NRO to NRE or to your home country. Thanks.

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

      Consulting charges would depend on the availability of money trail, number of documents or years and time required for verification of source document. Thanks.

  • Ninad Kudalkar

    Dear Sir,
    Small clarification on following point.
    My friend is currently located at UK & he have placed some NRO FD’s in India with few banks. Now as per my understanding I have asked him to provide TRC, DTAA & Identity prof to avil the benits of DTAA.

    Recently he prematured 1 of his deposit but he was charged with 30.90% instead of 15% as per UK aggrement.

    Note:- The fund where withdrawn from his NRO account & where remitted to his INDIA account.

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

      1. Finance Act 2012 introduced requirement of TRC to claim DTAA benefit. Without TRC, TDS @ 30.9%. While TDS is deducted at higher rates, you may be able to claim the tax deducted in India as rebate in UK.
      2. He may also file the tax return for last 2 years and claim the refund of over payment of tax. Let me know if you need any help for income tax return filing.
      3. I am not clear about the note or any other question that you are trying to ask. Please rephrase. Thanks.

      • Ninad Kudalkar

        We have checked with the bank from where the deposit was prematured, they have informed us that if the deposit is redemmed & customer is asking us to do the off shore remiitance then only DTAA beneift can be provide to customer.
        In case where customer is asking to remit funds to his INDIA bank account DTAA benfit cannot be provide to customer.
        Is the above statment is correct ?

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

          I don’t think the crediting in foreign or Indian account has anything to do with DTAA. What if you have a 5 year FD and you submitted TRC for every year. They will give DTAA benefit and deduct TDS at lower/DTAA rates for first 4 years without knowing which account you plan to credit on maturity. Also, NRO account is your India account only and TDS is also on your NRO account. The NRE and/FCNR account, there is no tax for NRIs, no need to deduct TDS and DTAA benefit not required. Thanks.


    would like to know can i transfer money that i earned by selling land in india to US account. Do i need to pay any tax if i transfer money from indian bank account to US bank account.

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

      You can transfer money after paying tax on capital gain on sale of land. There is no tax on the transfer from Indian bank to US bank. the tax is on the source of fund – in your case sale of land, if resulted in profit. Thanks.

  • Saurabh

    Hello Jigar,

    Great article, i hope you can help me with my query,

    I recently took a home loan for 55 Lakhs ( NRI) for a property in India. currently repaying money thru my NRE a/c. We recently sold a property in India which was worth 40 Lakhs . I want to use this money to repay my loan but bank would only accept any pre payment from NRE A/C. Please advice how this pre payment can be done ?

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

      I am not sure why bank is not accepting money. Try to understand the reasons. Also, if bank still insist on NRE funds, get the funds transferred from NRO (sale of property) to NRE after paying taxes. Thanks.

  • Rohit

    Hi Jigar,

    Very informative article. I hope you can help me with following query.

    I transferred GBP to my Indian savings account (not NRE/NRO) a few months back. Now I need the money back in the UK and looking for ways to repatriate. I am re-designating my local savings account as NRO account and opening a NRE account as well. (I know should have done that before transferring the GBP, but I didn’t at that time.)
    From what I have read, generally the money from sale of a property, shares etc. can be repatriated from NRO account. Can I repatriate the money I had transferred earlier using the NRO account? What would be the best way to repatriate?

    Thanks and regards,

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

      1. You can repatriate the GBP you transferred.
      2. You just need to approach the bank that the source of funds is foreign (UK) and not India and is not taxable in India. If you can convince them, they will make the transfer without 15CB/15CA. Thanks.

  • Jeev Varghese

    Dear Mr. Jigar Patel,

    I transferred around 35 lacs to my brother for his business need in 2012 Jan from my ICICI NRE account.
    Now he is planning to pay back the debt by selling one his property. Only problem is he is planning to deposit that much amount by cash into my ICICI NRO account.

    Do I need to provide source of fund in this case?

    Thanks for your help.

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

      Your loan to your brother may qualify as a loan on repatriable basis under FEMA rules i.e. Loan is to close relative, for business purpose, out of NRE account, interest free, minimum 1 year, etc. In that case, the loan may also be credited to the NRE account. While it may be very difficult to convince the ICICI bank, it is allowed. If not, you may want to credit funds into NRO and then transfer from NRO to NRE. Thanks.

  • Lexi

    My husband and are I NRI and now OCI for last 30 years. We are disposing our property which was bought with loan from HDFC in 1984 and repaid from NRE Account. The question now is:

    1. Can the Principal Amt be directly credited to NRE account? If so, is there a form to apply for CA and do this. (Apart from 15CA/CB). I read that this is allowed but don’t understand how to go about it.

    2. The Capital Gains would of course go into our NRO account and follow the usual course for repatriation.

    3. Is the Loan Interest which came from NRE Account treated as cost base? or only the contractors Statement of Account.

    Thanks for a very very informative blog.

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

      1. Yes, the principal amount can be credited to NRE account. I would assume that you would not have filed a declaration at the time of acquisition in similar to IPI7 form. In that case, you would need to prove with the documentation that the payment is made from foreign remittances or out of NRE account. If you can convince the bank, the principal amount may be credited into NRE account.
      2. Yes. However, as you are a NRI, care should be taken to comply with the TDS requirement. TDS of an actual tax amount @ 20.6% of the capital gain needs to be deducted. The 1% TDS is for the sale of property by RESIDENT. As you are a NRI, TDS @ 20.6% on the gain amount needs to be deducted.
      3. Loan interest can not increase the cost base but is allowed as a deduction from income on an annual basis, like itemized deduction in USA.
      4. As a US resident, the sale may be subject to income tax in IRS and you may also need to comply with the FBAR and FATCA (8938) requirements. Please let us know if you have any question. We have helped many NRIs comply with TDS requirement, tax payment and remittance of funds to USA. Thanks.

      • Lexi

        Here is more on same matter with respect to your answer:
        1. We purchased from Grindlays Bank NRE account, transferring funds from overseas – and keeping records of same. Further the property was purchased at the time of construction and availed of loan from HDFC.
        2. We are aware of the 20.6% TDS – What is your comment on Capital Gains being invested in the special bonds?
        3.We live in Australia – and after looking at DTAA – we understand that the sale is subject to capital gains only in India. Is this correct?
        4. Thanks for the input on US Rules.

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

          I am sorry about US rules. I would suggest to contact your CPA in Australia to determine if it will be taxable in Australia or not. If taxable, I would not suggest you to invest in capital gain tax bonds as it would not help you save tax in Australia. If you had paid tax in India, you would get the credit for the same in Australia. If you are keeping records, you may transfer the principal directly to NRE but I would suggest you inform the bank and get their approval for the same. Thanks.


    I desire to know the following:-
    -whether a person going on employment for short period once or more than once in a span of 1 or more years to UK/USA and tax is being deducted in that country, needs to convert his SB,FD,RD,PPF A/c to NRO/NRE
    If conversion is mandatory,what are the nature of A/cs to which the person should convert his A/Cs and what are the advantages & disadvantages ?

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

      If you are going for a project for a short term while being employed by an Indian employer for a short term, you may continue your resident account. However, if you are going for ma long term project, it is advisable to contact your bank and inform about your change in status. Also, there is no conversion but just re-designation. You can continue use your old account number, check books to transact. The benefit is that if you are a NRI, you can open NRE account, which accumulates tax free interest. Also, your status would be NRI so you would get special treatment from banks and banks love NRI business. The disadvantage of NRO account would be that tax @ 30.9% will be deducted, which you can claim while filing tax return in India. Thanks.


        Thanks for the information Jigar.
        D.Sen Gupta

  • lolla durgaprasad

    I am student and I won the lottery draw which was conducted by BMW company I won 500000pounds and BMW car for the delivery through RBI to to my sbi account they asking to pay 500110rs is have to pay before the transaction to my sbi account

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

      It is a scam. Do not pay a single rupee. you would lose your Rs. 500110. If someone can give your 500,000 pounds and a BMW, can’t they also give you 5000 pounds? Search on google for such scams and you will find a lot of information. My advise…..DO NOT PAY. Thanks.

  • prady

    Hi Jigar very informative article and its a wonderful forum with lots of knowledge on various NRI issues.

    I have a query which I am sure you might be able to answer

    I am an NRI residing in UAE and have booked an underconstruction flat in India which is in final stages. I have applied for a 75 % loan but loan procedure is taking time so have decided to do all the builder payments from my NRE account through some maturing FDs till my loan gets sanctioned as the builder charges a penalty for late payment and the bank has agreed that once the loan is approved they will reimburse the amount already paid to my NRO account. my question is am I eligible to transfer this amount back to my NRE account as soon as its reimbursed. if yes will it need any documentation from CA and will there be any tax component in this transfer?

    my second option is I take a loan overdraft on the NRE FDs from my bank to make the initial payments. in this case the bank will open a NRO overdraft account and give me loan against my FDs which I can pay to the builder and once i get reimbursed from the home loan i can close the Overdraft account. in this case my question is since the initial money is paid to the builder through a NRO overdraft account will this be considered money paid through local account? in case i sell the property will the proceeds be repatriable?

    also in both the cases will the reimbursement attract any taxes/tds?

    Thanks and best wishes.

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

      1. NRI can invest in 2 residential property on a repatriable basis i.e. if investment is made from NRE, the purchase price can be credited in NRE on sale. You need to prove to bank that payment is made from NRE.
      2. NRO to NRE transfer of upto $1 million per year is allowed. You need to check with your bank the procedures, how to transfer the funds.
      3. There is no tax on transfer from NRE to NRE, NRO to NRO, NRO to NRE or NRE to NRO. The tax is on the gain/profit when you sell the property. As you are a NRI, TDS will apply. Thanks.

      • prady

        Thanks Jigar for your reply.

        if a NRI can buy 2 properties on repatriable basis does thi include land also or only flats/built property? if a NRI buys more than 2 properties is the repatriation based on order of buying or any 2 properties can be selected for repatriation?

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

          Limit of 2 residential properties on repatriable basis. Investment in any other – commercial or plot are on non-repatriable basis and sale proceeds can be credited in NRO account only. Thanks.

          • prady

            Thanks Jigar

            but what about the order of property purchase?
            if a NRI buys lets say 3 flats which 2 flats are eligible for repatriation. the first 2 bought or the NRI can choose any 2 irrespective of the order of buying?

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

            Investor can select which two residential property. There is no order. Thanks.

  • Mahesh

    Hi Jigar,

    Could you please advice what are the tax rules in the following scenario.

    I live in US and GC holder. I have property (apartment) in India. I purchased it in 2005-2006 with about 90% loan in INR and with about 10% cash as down payment when I am working in India. I cleared it all my loan with my salary earned in US. I like to sell this property now and like to bring my money back to US.

    I have both NRO and NRE accounts.

    If I sale the property and deposit the amount in NRO a/c and then transfer to to NRE.

    What are the taxes and how much I will loose the amount.

    I think about 9.5% tax applies for moving from NRO to NRE?

    How much tax at the time of sale amount deposit in to NRO a/c after sale proceedings. Will bank will take care of the taxes or I should consult a tax professional?

    I purchased the property for about 30 lakhs and it may be about 60-65 lakhs now. I don’t know whether seller would completely pay all the amount in Check/DD or some cash to hand. But depositing approximately about say 60 lakhs in to bank is the case. What % tax is involved in the transaction?

    I assume that there is no tax again in US when transferring from NRE. If there is any taxes please indicate.

    Thank you very much for your input and advice.


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

      1. There is no tax in India or US on transfer of funds from one account to another e.g. from NRO to NRE or your account in India to your account in USA.
      2. The tax has been and is always on the income both in India and in the US.
      3. As a NRI selling property, the buyer needs to deduct TDS @ 20.6%. You should hire an experience CA to help you calculate the gain and convince the buyer to deduct TDS only on the gain amount and not on the gross sales.
      4. Once TDS is deducted and/or tax is paid, you can transfer the funds to NRE or USA after providing 15CB CA certificate, and submitting form 15CA to income tax department and both forms to your bank. Thanks.

      • Mahesh

        Thanks Jigar. Very helpful. I really appreciate your time.


    My friend is an NRI and he is having NRE account in SBI, now he is going back to India as permanently.
    Could you please tell me whether he can convert NRE a/c into NRO a/c or normal saving acount, the amount will be taxable?
    if, it is possible to convert, let me know the procedure and what are all documents required.


    M. Sarathi

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

      On return to India, your friend may not be able to maintain the NRO/NRE account but have to maintain the resident account and transfer the funds. He would also have an option to transfer funds to Resident Foreign Currency (RFC) account. Interest on NRE and RFC account would be exempt but the interest on resident account would be taxable. Procedures and documents would depend on the bank. Thanks.

  • eureka

    Hi Jigar,
    you are doing a great job helping people to resolve the finance related issues.

    I’ve a question. I’m currently in USA and I have an NRO A/C maintained in SBI. They apply 30.9% interest on the interest earned on NRO Fixed Deposit A/Cs. With Double Tax Avoidance Treaty between US and India, I could probably save the interest cut to 15%. However I need to file “Tax Residency Certificate” and Self Declaration Forms for that.

    While browsing online I found the Self Declaration Form online for SBI NRO. But I don’t understand what is Tax Residency Certificate?

    Is it something that I can get online? Is this certificate for USA or India? Can you please tell me where I can get this kind of certificate form or How I can prepare such certificate?
    This is to show to SBI A/C in India that the money I have in NRO A/C I’ve already paid the tax in USA on that.

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

      1. The TDS can be cut to 0% if you transfer funds from NRO to NRE and have NRE deposit.
      2. The Tax Residency Certificate (TRC) is required to prove that you are a resident of US. You would need to contact IRS, pay fees and then obtain the TRC. Also, you would need to do the same procedures every years. Instead, break NRO FD, transfer to NRE, invest in NRE FD and be free from all these hassles. Thanks.

  • Dave Shah

    Hi, great article. I just had one question:

    With Indian banks being given more autonomy, can i ask my bank/are they able to pay NRO interest after TDS directly to NRE account for example using online banking , or will they still require a CA certificate, even though they paid the tax themselves?

    Thanks, Dave

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

      You can definitely ask but it would be very difficult. Unless regulation is changed, it may not happen. While they may not directly credit NRE, you may ask them to transfer from NRO to NRE without CA certificate. Thanks.



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

      If the funds have been in the NRO FD since last 15 years, they may not need the source. Records for last 8 years only needed to be kept. Please follow up with the bank and insist that there is no records and funds in FD since last 10+ years. If they do not agree, change the bank and transfer the funds. Do share your experience. We can help you to find a bank and transfer the money as well. Thanks.

      • RAJ DORE


      • RAJ DORE




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

          I think Citi may be expecting that You would prove the trail of funds i.e. funds in Citi deposit is from the sale of property. Please call or contact us through email if you want us to help you with the transfer. Thanks.

  • Vinod Viswanathan

    Hi Jigar,

    Great Article,

    I own an account in SBI NRE, can I transfer an amount from my NRE account to any other NRE account through the net banking. I have done to local accounts but I am not sure about transferring to NRE account.

    Thanks in advance.


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

      Yes you can. Transfer from NRE to NRE is allowed without any restrictions. Thanks.

      • Vinod Viswanathan

        Thanks a lot


    I need your guidance on repatriation of fund to parents ( from Salary a/c ) from US to India by F1 visa holder ( completed her MS from CMU , at present employed with one of reputed American firm ) applied for OPT .

    Thanks & Regards,

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

      There is no restrictions. Just contact your US bank to wire funds (if more). Else, use any money transfer services available online (every bank in India offer online money transfer) or money changers in US to transfer money to your parents account. There is no gift tax on the transfer to parents. Thanks.

  • Ashwin Bala

    Dear Mr. Jigar Patel,

    I am working in Dubai, UAE from past 5yrs and have an active NRE/NRO account with HDFC. I wish to transfer my funds from NRO to NRE account online and can i withdraw cash in Dubai if anyone deposits money in my NRO indian account.

    Kindly advise.

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

      You may not transfer funds online from NRO to NRE or withdraw NRO funds in Dubai but once funds are in NRE, you may withdraw in Dubai. Please contact your bank or your CA to help you with NRO to NRE transfer. Thanks.

  • Pranav Kumar

    Dear Mr. Jigar Patel

    Great discussion.

    What is the process of getting the gift money from India to abroad, the tax implications and restrictions.


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

      Contact your bank and sign a declaration, bank will transfer the money upto $125000 per year to close relatives. Thanks.

  • ashish

    Hi Jigar,

    I found your articles quite informative. My query is regarding the funds in my NRO account which I’d like to transfer to NRE account so that funds can be repatriated to GBP when required.

    Please advice on the best & quick option for this.

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

      Please contact your bank where you have NRO and NRE account, understand and follow the procedures. Bank will transfer the funds. If you have any question, please post or let us know. Thanks.

  • Haninder

    Hi Jigar, this is a really informative blog. Thanks for that.

    I had one query – if I have to transfer an amount from my India NRO to UAE savings account, what is the process for that? Look forward!


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

      Determine the source, and contact bank. If requried, obtain 15CB certificate from CA, file 15CA and then submit both to the bank for the transfer to UAE. Thanks.

  • Anmol

    I am a NRI and US green card currently planning to move to India for few years with a job. I have mortgage payments in US and other expenses. How can I remit my salary from India to the US on a monthly basis ?

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

      You can remit the salary after TDS to USA. Form 15CB/15CA may be required. Contact your bank, company and CA. Thanks.

  • Jack

    Hi jigar
    I have a query for you. I’m a Canadian citizen would like to move to India permenantly. But currently I m getting some money from a insurance company monthly as a compensation which is direct deposited every month. If I move to India , how could I access the money from India. Thanks

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

      You may continue to receive compensation in your foreign account even after you move to India. And, then you may transfer the funds to your Indian bank account. Thanks.

  • NS

    Please help.
    We live in USA and sold the property in mumbai in Dec.2012 and deposited 30 lacs profit in capital gain account with IDBI. We could not find suitable property and decided to pay tax on profit and wanted to convert capital gain nro account to nre account so we could get money in usa. We have already paid taxes in USA also.It has almost 2 years since we sold the property and 18 moths since we amended tax returns and paid tax on capital fains. IDBI wanted form 15G signed by CA and CA says it needs signature of income tax officer.We had applied for PAN card in mumbai 5 years ago and have been filing income tax in mumbai . Now IT is saying our PAN card is in Delhi and need to be transferred in mumbai . Have filled out form with CA a year ago for transfer and it is still not transferred and both IT and CA n keep on asking more and more documents and CA keeps on asking fee for additional work and nothing has been done.
    Will appreciate any help very much

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

      1. I am really sorry for your experience.
      2. Please confirm whether the PAN is registered in Delhi. It can be checked online – who is your assessing officer
      3. If Delhi, please confirm if the file transfer application has been filed both in Delhi and the copy of acknowledgement of the application is filed to Mumbai and when.
      4. Follow up with CA why case not yet transferred
      5. You may also want to get second opinion from another CA in Mumbai.
      Is having problems, contact us. Thanks.

  • Hemant

    Hi jigar i want to deposit money in my brother nri account without convert the money from delhi whta is the processor

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

      I am not sure about what you want to do. As a brother, you can give gift to your brother and deposit in his NRO account. Process is write a check and deposit in a bank. If you are giving gift, you may also want to prepare a gift deed/letter for income tax purpose. Thanks.

  • Sunil Thakur

    Dear Patel sahib

    On 16 Oct, 2014 , I transferred 10Lac rupees from Thailand to my Brother account ” Axis Bank in India”for his surgery. Can Axis bank repatriate the balance unused amount to me in Thailand based on evidence of transfer document ? Or Can Axis bank transfer it to my NRE account in corporation bank India. ? As per RBI rules is both ways possible ?
    Thanks in advance and best regards

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

      1. I wish but it man not be done that easily.
      2. Your brother may gift the funds back to you in Thailand or write a check that you can credit in your NRO account. Once in NRO, you may transfer the same to your NRE account. Thanks.

  • Vinay

    Hi Jigar,
    My father in law was working abroad and passed away. His NRE account has been closed by bank while he has an NRO account along with my mother in law. My mother in law also has a savings account.
    For the final settlement the company wants to transfer money. Is it fine to transfer to the savings account of my mother in law? Will there be any tax? will tax be deducted later in the FY?


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

      You need to understand the composition of settlement in detail – PF, Gratuity, life insurance or case settlement. Also, tax can be deducted only at the time of payment. Once you have received the payment, it can not be deducted later. Generally such payments are not taxable. However, any investment of the money received by your mother-in-law may be subject to income tax. Please contact us if you need guidance for investment or taxation. Thanks.

  • Vinay

    Hi Jigar,

    Thanks for the informative article. I have a question related to interest earned in India on nRE fixed deposit. Although the interest earned is tax free in India, should the tax earned be reported in USA tax return and tax be paid on that income?
    can you clarify how we can prevent that if indeed NRE deposit interest is taxable in USA?

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

      Yes. Unfortunately, you can not prevent it. It is taxfree in India as India is getting much needed foreign exchange. USA does not benefit from NRE deposits so it is taxable in USA. Thanks.

  • Purnendu Prasad

    Dear Jigar,
    I am an NRI and live in USA. I had remitted USD 50,000.00 in 2011 to one of the nationalized banks in Delhi. The funds were converted at the ruling rate of exchange and credited to our joint NRE account.
    I visited India shortly after that in October, 2011 and requested bank to add some more domestic funds and to place funds in terms deposit to earn quarterly interest.I didn’t notice that while combining domestic funds the bank officer opened domestic term deposit instead of NRO term deposit.
    Further, I had another term deposit with the same bank and the funds amounting to INR 500,000/- was taken out from my pension account and placed in term deposit.In this case also instead of opening NRO term deposit the bank opened a domestic term deposit.
    When these deficiencies came to my knowledge, I requested the branch for conversion of domestic deposits into NRE term deposits in terms of RBI AP( DIR) Cir no 45 dated 14th May, 2002 wherein the apex bank had instructed bankers to allow repatriation of current income In India such as like rent, dividend, pension, interest etc. of NRI who may not be maintaining NRO account. For the said purpose, The RBI has prescribed for the bankers to obtain ( I ) Appropriate certificate of CA certifying eligibility of proposed remittance, and (2) Further, certifying that applicable taxes have been paid/ provided for.
    Delhi branch of the bank took up the matter with their International Division in Mumbai who informed branch that they made mistake in my case by opening domestic term deposits instead of NRO term deposits.International Division,Mumbai informed the branch that the conversion of deposits into NRE deposits can be permitted only from NRO accounts duly complying with other CA certification etc.
    I have been filing my tax returns on line and my PAN no is recorded with banks.The branch is deducting TDS and mail me the original certificates annually.
    Further, the domestic term deposit was maturing on Oct 15, 2014 and I requested the branch on September 30, 2014 to place the maturity proceeds to my NRO account.After that I requested the branch to debit my NRO account and open a new NRO term deposit.The branch is silent about my request.My another domestic term deposit of INR 30 lacs,which consists of inward remittance of USD 50,000.00 and domestic pension fund taken out my domestic SB pension account.This account will be maturing in November, 2015.
    Please guide me as to how I can get the conversion of these accounts done into NRO accounts and finally get them converted into NRE term deposits.
    Your guidance and step by step procedure will be highly appreciated.
    Purnendu Prasad

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

      1. Open new NRO and NRE accounts with other bank. Let me know if you need any help with finding the right bank for easy conversion into NRE.
      2. Transfer your current funds – both in your resident account and NRO account to the new NRO account with new bank
      3. Transfer funds from NRO to NRE in the new bank
      I hope this helps. Thanks.

  • Maha

    Hi Jigar –
    Thanks for all your valuable suggestion and guidance.

    I have taken 25 Lac loan in UAE country and remitted this money to my mother SB account through Exchange. She withdrawn that money and used for personal commitments and bought one property. Now due to some personal problem I wanted to comeback to India, So I have to return the complete 25 Lac to bank in UAE. I have paid 5 Lac (in last 6 months), the rest 20 Lac I have to pay. I have below questions :
    1. How do I get my money from India to UAE account – what are the options, can I do bank transfer from my mom SB account to my international account. If yes how much do I loose in case of 20 lac due to currency conversion and commission (approximate)
    3. I googled the the same and found that
    a. Through Hawala – but it’s too risky
    b. can exchange with Friends in UAE and depsoit the same in INR to their SB account in india. – is there any risk involved for any of us.

    I just worried, trying to see how do I minimize my loss.

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

      1. You need to determine if the transfer to you mother was a gift or loan. If loan, your mother can return the loan without interest however, other RBI requirements to be complied with. In that case, the money can be credited to your NRE account.
      2. Your mother can gift and transfer funds to your UAE bank upto $125,000 per year.
      3. If your money is in your NRO account, you can transfer the funds from NRO to NRE and then remit out of NRE to your UAE account.
      4. The exchange with friend in UAE and India is a type of hawala transaction. Such and other hawala transactions are illegal. We do not recommend such transfers. You may want to select one of the first 3 options. Thanks.

      • Maha

        Thanks Jigar!

        As per 2nd option – how much money will I loose due to currency conversion. For eg my mom will 1 Lack INR to my UAE account ( INR – USD – UAE) in this case how much will I collect in the UAE country due to currency loss. Just want to know the approx. value.


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

          It would depend on the exchange rage on the day of transfer and the bank you use for transfer. Thanks.

  • Hari S

    Hi Jigar,

    I am an NRI living in the US on L1-A visa. I have been in the US and UK for the last 10 years on work permits (H1-B in the US, Tier2 ICT in UK and now L1-A in the US)
    I have applied for my green card under EB-1 and should get it within the next 2 months or so.
    I was told by some friends that if I become a US green card holder, there are severe tax implications on my India income and assets under the new FATCA rulings. They also advised me that I should repatriate these funds back to the US before I get my green card.

    I have 4 real estate properties in India which I have purchased over the last 10 years with my foreign income and some investments in mutual funds and NRO deposits/savings.

    What are the implications of getting my green card on my india investments and should I repatriate these funds back now?
    Also, how much can I repatriate back to the US and what are my tax liabilities if I repatriate?

    Looking forward to your advise.


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

      1. As you file your tax return as “Resident” on H1B or L1, you are a resident of USA for income tax purpose. Having a greencard does not change your status for IRS. As a US resident, you are required to include all your global income in your 1040 to IRS and report any financial accounts in Form FBAR to Department of Treasury. The requirements apply to all residents of USA, whether or not you have a greencard.
      2. In India, your status is NRI. The rules are same whether you are a resident of USA or UK, whether have a greencard or not. As an NRI, you are allowed to remit upto $1million per year, subject to conditions.
      3. It is a transfer of your money from one account in one country to another country. There is no tax on the transfer. The income tax department in India only want to ensure that taxes, if any, on the funds in India, have been paid. Thanks.

  • Kerman Wadia

    Hello Jigar,
    I moved to Canada 1.5 years ago. At that time I was holding a resident savings account and was unable to re designate resident S/A to NRO account. Soon I will visit India for a holiday and would like to re designate S/A to NRO account. To freely repatriate/remit money outside/to India. Is it possible to directly re designate resident savings account to NRE account. The funds in my S/A account are from salary earned before I moved to Canada. I have paid TDS and filed returns on earnings prior to moving. Please advise.

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

      Resident account can be redesignated to NRO account as both resident and NRO account can be credited with local as well as foreign funds. Only funds with foreign source can be credited to NRE account. However, once funds are in NRO, you may transfer the funds from NRO to NRE as allowed by RBI upto $1 million per year. Thanks.

  • Raina

    Hello Jigar,

    My father (Indian Citizen) is getting ready to furnish some funds to me. I am a US citizen. I have NRO & NRE accts in SBI.

    Can I deposit those funds (will be in Rs) into NRO account? Would I be able to move those funds from my NRO to NRE acct ? Once those funds are in my NRE account, can I repatriate them to US?

    Thanks in advance.

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

      Your father can transfer upto US $ 125,000 to your US bank account directly as a gift without any formalities. Just ask your father to contact his bank in India and tell them than he wants to send money to you in the US as a gift. He would just sign a declaration that it is a gift and money can be transferred immediately in 2-3 days. This would be the easiest, fastest and cheapest way to have funds in the USA. Thanks.

      • Raina

        Thanks Jigar.

        I believe that according to the US Tax Laws, gifts under approximately $22,000 for an annual year are not taxable. Anything more than that amount, I will have to file that in my annual taxes. How will it impact my taxes for that year if the amount is more than $22,000?

        If my father has only Rupee account in India, will the bank still be able to repatriate the funds in USD even if he does not have $ / foreign account. So essentially, is repatriation allowed by RBI & SBI on Rupee account held by an Indian Citizen?

        You mentioned that he would just sign a declaration, is that a form of some sort provided by the bank or a Legal document or something for which we will need a CA?

        Can you give me a contact for a CA in Patna?

        Thanks in advance,

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

          1. As per US taxlaws, the gift tax is on the giver and not received. Without attracting any tax, a US resident can GIVE gift of up to $14000 to anyone. About gift from your father, who is an Indian resident, a US resident can accept any foreign gift without any taxes. However, you would need to declare the amount to IRS in a form.
          2. Yes, your father can send you gift in USD even if he only has resident saving account.
          3. We do not have any contact in Patna. Technology allow us to provide service to NRIs from all over India and all over world from Ahmedabad. Thanks.

  • Malay

    Dear Mr. Jigar Patel,

    I am an NRE for more than last six years. I have done few Life Insurance Policies with Declaration Form filled-in for NRE status while doing the policies and for which all the first & renewal premium(s) were paid directly from my NRE (INR) A/C.

    Please advise me, whether I can get back (through NEFT) the interim money-backs and maturity amount from such policies directly into my same NRE A/C (INR) from where the premium cheque (s) were issued to LIC or I need to transfer the same to my NRO A/C and from there again I need to transfer the same to NRE A/C?

    What is the RBI guide-line in this regard?

    Expecting you reply in mail as well.

    Many thanks for your kind support.

    With Best Regards,

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

      You may be able to receive the amount upto premium paid in the NRE account. Any additional amount is to be credited to NRO account only. Please check with your insurance company or agent for the same as different insurance company may have different requirements. Thanks.

      • Malay

        Dear Jigar,

        Many thanks for your advice.

        I am referring to Life Insurance Company of India, if you are aware of the requirements, please do advise. I tried to get an answer from LICI since last one year through customer care as well as so called agent, but in vain.


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

          Check with your bank as actually the bank allows/approves the transfer. Also, if you receive only 1 cheque, I think, it would be credited into NRO only. Thanks.

  • Ranganatha B N

    Dear Mr. Jigar Patel,

    It is really to see that you are clarifying so many doubts.

    As a layman, I am asking you this question:

    Out of sale from my house property, I have invested Capital Gain in NHAI. Out of the balance amount, I want to transfer USD 80,000/- in one go, as gift to my son-in-law (H1B visa) and Daughter (H4 Visa) through RBI LRS scheme, to their USD account in US. Can I do so with form A2 declaration?.
    Is this amount taxable at US for my daughter & Son-in-law?



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

      You can gift your after tax funds to your daughter/son-in-law under LRS with just declaration. In USA, gift is on giver and any foreign gift received is not taxable for US residents. However, a form needs to be submitted to IRS declaring foreign gift received. Thanks.

  • Krish

    Hi Jigar, Nice article. Here is my query.

    While I was Resident Indian 15 years ago, bought a flat and sold recently. My local job savings plus home loan was used in buying the property then. I became NRI 8 years ago. The sale proceeds are currently in NRO account and LTCG is paid. I do have NRE account. As my source of funds into NRO are not from foreign, would it be possible for me to transfer the funds to NRE account from NRO. Thanks in advance.

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

      Yes. Please ask your CA to issue 15CB/15CA and follow up with bank where you have NRE account to transfer the funds. Thanks.

  • Milind Kulkarni


    I am staying in US and have Green Card. First let me thank you for all the information in your blog…it’s pretty informative. Few questions:
    1. Is it mandatory to declare the tax-free interest earned on NRE FD while filing US tax returns?
    2. Is there any tax implication in US when the funds in NRE account are transferred to US account?
    3. Can the proceeds from the sale of property (or rent) in India be deposited directly to NRE account or it has to first come in NRO account and then be transferred to NRE account?
    Thanks and regards,

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

      1. Yes
      2. No. Tax is only on income. There is no tax on transfer of funds from your one account to another.
      3. If TDS is deducted and 15CB/15CA issued by the CA (yours or of rent payer), it may be credited directly to NRE. Else, NRO and then transfer to NRE. Thanks.

  • Priya

    Dear Mr. Jigar Patel,
    I recently became NRI
    I have opened NRO/NRE Account
    I am in the process of transferring my funds to NRO Account (mainly indian income – dads savings, my past salary, sale of shares, marriage money, interest income)
    When I asked the bank officer for transfer from NRO to NRE, she said it can’t be tranferrred since its not foreign income. Is it true? It will be great if you can give a clarification on the same. I read quite a few articles but am left highly confused. I consulted a CA firm too, one of the partners said the same thing. If thats true how rent from india and sale proceeds from indian property can be transferred to NRE? Your guidance on this matter will be highly appreciated.



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

      Money can be transferred to NRE. I am surprised to hear this especially it has been allowed since May 2012. You would need to get 15CB/15CA from your CA and convince your bank. If your CA or bank cannot help, change them. Thanks.

      • Priya

        Thanks Jigar for your valuable advice. The main thing I guess here is the source of funds. The bank says that it should be a foreign source. My source of funds is Indian and quite varied. My dad had deposited his salary savings in my name and made FD’s when he was alive. Also after his death I got some of the FD’s which were in his name. Other sources are my salary, sale of shares and mutual funds before I became NRI, money that I received in marriage (received in cash deposited in bank) which were invested in FD’s. Can I transfer only the interest income earned to NRE or the entire principal amount (source of income as mentioned above). ?

        • Priya

          Also would I be required to give the bifurcation of principal (source) and interest income?

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

            No. Your CA may require but bank only cares for the CA certificate with the amount that you need to transfer in it. Thanks.

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

          Entire amount. NRIs are allowed to remit upto $1 million per year from NRO account abroad and since May 2012, RBI extended this facility and allowed transfer from NRO to NRE as well. Thanks.

  • Gopal

    Dear Sir;

    Can I,in India, remit INR as gift to my only daughter,who has NRO A/C in a bank in India and what is the max. INR I can gift

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

      Yes. Upto US$ 125,000 per financial year (April-March). You may also transfer the funds to her in foreign currency in foreign account directly. Thanks.

  • Atul soni

    Jigar Bhai,
    Thanks for your very informative blog & co-operative nature for answering us.

    My problem is,
    I have NR (e & o) account in PNB. I remit my salary in this account. I do not pay tax on remittance in India; (DTAA) with Ukraine.
    My employer want to deposit some money (additional amount generated due to currency fluctuations) apart of my salary through anonymous channel/account.
    Will this deposit attract tax on me because it is apart of my salary sum and deposited by different entity than me?
    if yes then, what is the tax-free limit/slabs.

    May I have your email for requesting CA services.

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

      Are you a resident or NRI? As an NRI, you are not taxed in India for your foreign income earned during employment outside India. I would suggest you to ask your employer to pay through banking channel only. Thanks. Our contact information is available on “Contact Us” page. Thanks.

      • Atul soni

        dear Jigar Bhai,
        I am NRI, and employer will send money through banking channel but not from my company’s account, it will be some other account. (means I can’t prove it as my salary, but will be an anonymous deposit )

        Thank you very much for a prompt personalize response.

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

          I suggest you take the credit in your foreign account and then remit to your NRE account in India. Thanks.

  • pallavi kharat

    How much amount of Indian Rupees received as wedding gift can be transferred to England/ abroad after the wedding, as per RBI rules.

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

      RBI does not regulate or limit any particular transaction for NRI to remit. The remittance limit is general out of NRO. Amount credited in your NRO bank account can be transferred. However, you may need a CA certificate for the same. Also, please keep in mind that any cash deposit of Rs. 10 lakhs or more in the saving account is tracked by the income tax department, who may issue notices for scrutiny or explanation. Please check with you bank and your CA before you deposit the cash in your account as wedding gift. Thanks.

  • namita

    hello Mr. Patel,
    your past queries have helped me answer this question but wanted your confirmation as every case is different. i am a US citizen, have an NRE & O accts, my parents still live in india and as they are getting older, they want to deposit some money into my acct . if i understand correctly from past queries, any amount deposited under $125K without being taxed , only the interest earned on this money is taxable per US law, right?? thanks for your time and service .

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

      Yes. However, you would need to inform IRS of foreign gift received. Your parents can also transfer (remit) the funds directly to your bank account in the USA. For any transfers in Indian bank account, you may also need to file FBAR to department of treasury or Form 8938 to IRS. Thanks.

  • Prachi


    I have a question. I am a GC holder. Can my parents gift money to me in INR and deposit funds directly in my NRE account.


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

      The bank may not allow you to directly deposit the gift money to NRE account. You may credit the gift into NRO and then transfer from NRO to NRE. Your parent may also gift directly into your US bank account. The limit for gift to NRI is $125,000 per person. Thanks.

  • Tanzeer

    Hi naresh ,

    We are UK based , we need to repatriate funds . Is it possible to help us with this procedure?

    Looking forward hearing from you


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

      Yes. Let me know the source of funds. Please email using contact us. Thanks.

  • lisa


    Is it possible to transfer large amnt of money to singapore..???..if yes…cn you pls tell me how

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

      As an NRI, you are allowed to transfer upto $1 million per year out of your NRO account per year. So you may transfer $1 million before March 31, 2015 and $1 million in April 2015. We can definitely help for the same. Please contact us through email. Thanks.

  • Parag

    Hi Jigar,

    I need your advice regarding money transfer to India for buying a residential property. If possible, could you please share your contact details . I am ready to pay your consulting fees if any


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

      We would definitely help you for the same. Our contact details are in the “Contact Us” page. Thanks.

  • BV

    Hello sir, I recall you mentioning some financial institutions still opening Trading accounts for NRIs/PIOs based in USA and Canada. Could you provide some names, so I could research them before deciding?

    I tried searching on my own, and not able to find one except Naviamarkets.com and so I have a feeling that I may be missing something. Could you guide please?

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

      We will be able to guide you. Please contact us for the same. Thanks.

  • GKrishna

    Dear Mr. Jigar Patel,

    Went through your article, was very informative.

    I have some queries. Could you please reply.

    I was working in India in 2013 till July and moved to the US as dependent. The salary that I earned with the Company in India deducted my tax at source. I also had an FD created with my savings in India and remittance sent from my husband. The bank deducted tax at source at 10%. I filed my tax return in India (for Apr 2013-Mar 2014) for the salary I earned and the interest from the FD in July 2014.

    While in the US, my husband and myself filed 2013 tax returns (Married filing jointly) showing me as his dependent.

    I am in India for a vacation now and plan to re-designate my accounts from Resident to NRO as I could not do the same in July 2013.

    a) Will I need to mention my salary earned and interest on deposits in India (between Apr 2013 – Dec 2013) for 2013 and my interest on deposits in 2014 (between Jan 1, 2014 – Dec 2014) in my US Tax returns? I stayed in the US for 173 days in 2013. Will I be considered a resident for Tax Purposes in US?
    b)Also, do I have to file my FBAR for 2013 as I was in US for 173 days?
    c) Once the accounts are converted to NRO,
    1) will I need to continue to file my tax returns in India?
    2) Will I be treated as a resident of India for tax purposes? If so, till when?
    3) Do I have to pay taxes at 30% (NRO rate) instead of 10% from date of deposit?
    4) Should I mention interest from NRO accounts in my US tax returns starting


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

      1. Only if you file 1040NR, you are considered a non-resident for IRS. If you file 1040 as married filed jointly, you are a resident for tax purpose. If you are a resident, your global income is taxable in USA.
      2. The deadline for filing FBAR was June 30, 2014 and no extensions are allowed.
      3. Conversion of accounts to NRO has no relation with filing taxes. You would file taxes if your income is more than basic exemption limit i.e. 250,000 for FY 2014-15. If you live less than 182 days, you would be considered as a non-resident for income tax in India. The 10% TDS is for residents, 30% TDS is for non-resident. As per India-USA Double Tax Avoidance Agreement (DTAA), TDS @ 15% may apply; however, you would need to obtain TRC – Tax residency certificate from IRS. Instead, I would suggest you to transfer the funds from NRO to NRE as interest on NRE is exempt in India and no TDS. For all interest – whether NRO or NRE, you would need to report and pay tax in USA. Thanks.

      • GKrishna

        Thank you so much for clarifying my queries.

  • Nikunj Agarwal

    Dear Sir,

    This is the fact situation

    The Owner of the property (an apartment in India) is a PIO, holding a British Passport, Permanent Resident of Australia. – lives and works as a doctor and files taxes in Australia, basically a Non-Resident. She does not have a PAN Card at the moment, but will be applying for one now. She has no source of income in India, from any head except the rental income under discussion below. She has a NRO account in HDFC bank.

    The tenant here is us – we can be an individual or a company (if it makes a difference on TDS or something relevant, else we prefer we are a company)

    There is a DTAA between India & Australia
    Article VI of the DTAA deals with Income from Real Property (Immovable)

    Now, we shall pay 60,000 / month rent

    1. How much TDS should we deduct – (15%,20%, 30%) – all sorts of numbers are flying.
    2. After TDS deduction by us here, is the income tax free in Australia, given the treaty, if not – how much tax ?
    3. Does it make a difference if the owner does or does not have a PAN card and how? advantages ?

    I require a bit detailed understanding of the transaction from the tax, refund and filing perspective. Which forms? etc,

    The query is urgent,
    I would be grateful if you could help me at your earliest convenience.

    Thanks and Regards

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

      Any taxable payment to NRI, tax @ 30.9% needs to be deducted. If you want to take the DTAA treaty benefit, she would need to have a TRC – Tax Residency Certificate from Australia and PAN. If no PAN, TDS @ 20% or DTAA rate whichever is higher. Please contact your CA for the forms and procedures. Thanks.

  • garcy princy

    I am residing in oman in depondant visa. Since last one year I have Been saving some amount doing some personal work at home like taking tution and the same I want to remit (omr3500) in my husband nri account. How much will be limit for remittance to husband nri account and any income at source will be raised as this amount has been not directly credited in oman bank account. Please advise.

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

      1. I would suggest you to open NRE bank account in your name and transfer the funds. In India, the income tax return is to be filed individually by you and your husband and any transfer to spouse raise a flag. You may also transfer the funds to your husband’s account in Oman and he may transfer the funds into his NRE account in India.
      2. There is no limit on remittance. However, any income from the funds transferred to spouse (your husband) is clubbed into the income of transferor (you). Thanks.

  • Rohit

    I m working in doha and transferring my salary into my indian saving account, please let me know whether the income will be taxfree.

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

      As you are an NRI, your salary income outside India is not taxable in India. Also, there is no tax on transfer of savings from Doha to India. However, income tax on your India income, if any, may be subject to income tax in India. Thanks.

  • Sivachandru

    Hi Sir,
    Can we get back the tax paid to US govt once we come back to India? I heard that, As we are not US citizen, the tax will be repaid to us. Is it true? If so how can we do that? Thanks in advance.

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

      If you have paid tax more than required, you would file your income tax return to IRS and ask for refund of tax. Thanks.

  • Sunildutt Madav

    Dear Jigar , salute to you for such a tremendous and professional work . Hi i am looking for advise for the following case , i know you will give me solution .
    Fact of case : NRI holding residential property in INDIA , applied for Loan Against Property , as the loan amounts are not repairable ( please confirm) , it has been credited to NRO account . Can that be transferred to co-applicant account , who is resident of India. And from there can route to indirectly to NRI account . Is there any out way , with proper compliance of RBI

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

      The loan funds are non-repatriable funds and FEMA/RBI does not allow repatriation. Any other direct/indirect mode you choose for repatriation would be in the gray area and not in the proper compliance of RBI/FEMA regulations. Thanks.

      • Sunildutt Madav

        Thanks Jigar ,


    My wife and are UK resident for over 35 years and our tax affairs are in proper order.We bought two properties in India between 2009 and 2012.One of the properties is rented since 2010 and rents are regularly paid in our NRO account.We also have NRE account and NRO plus NRE FD accounts.We have notified UK tax office HMRC that we have properties in India and have rental income from one of them.We used to declare our rental income through our accountant to HMRC but are now told that as rental income is below £2000. per person we do not need to bother to declare.We do not have any other income from any other sources in India. We are now contemplating to sell our rental property as soon as possible.Both properties were bought by transferring monies from UK and were transferred to our NRE accounts.Once sold we wish to transfer money to UK in sterling pound at the prevailing rate.Can you please tell me what does this involve.1.What documents I need to bring with us 2.What is involved as regard to Capital gains? 3.How much can we transfer?
    Rajni and Jayashree

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

      You would be able to transfer the sale proceeds of your property provided you follow all Income tax and RBI/FEMA rules. As you are a NRI, rules relating to TDS are to be complied with and for remittance, CA certificate 15CB is to be obtained and you would need to e-file Form 15CA to the Income tax department. The document required would depend on the bank so liaison with bank is important. You also need to have great relationship with bank so that you get better exchange rate. We have helped many NRIs from all over world having properties in any part of India. Please contact us if you need more information. Thanks.

  • Anushka

    Hi Jigar,

    Great Achivements !!

    I have a query, my dad is an NRI and I am currently married and settled in India. There is an NRE account in my name, in my native place, which hold more than 50 lakhs and yet another account to which he will be transferring over 50 lakhs. All these amount will be transferred to a joint account in mine and my husband’s name, and we are currently residing in Mumbai. The amount will be used to purchase a property. Can you please advice me the tax implications at each stage. And also if there are any ways to transfer it tax free.

    Thanks and Regards,

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

      You would need to check the gift tax regulations in your father’s resident country. Also, as you are settled in India, you are not allowed to have NRE account. As per Indian laws, a gift from close relative (father) is not taxable but it is advisable to be have a gift deed and be reported to the Income Tax return. Please contact us if you have any other question. Thanks.

  • RS


    I have a slightly different scenario and need your advise. Im an NRI based in Singapore and have a NRE+NRO account in India. My wife converted her status from resident to NRI and subsequently converted her regular savings account to NRO account.

    Since her NRO savings are taxable, is there an option to transfer the amount to my NRE account either by
    a. repatriating the funds from her NRO to our Singapore joint savings account and subsequently transferring to my NRE?
    b. transferring from her NRO to my NRO and subsequent transfer from my NRO to my NRE?

    Will there be any additional taxes imposed (gift tax etc.) in either of these processes?
    Kindly advise which of these is the right way or if there is any other way around to achieve this ensuring total compliance.


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

      There is no need for repatriation to singapore and back. It would only make bank happy to charge conversion fees twice. Instead, you may transfer the funds from NRO to NRE directly and save tax. Please contact if you want us to help you in transfer from NRO to NRE. Thanks.

      • prashant

        Please share yourcontact detail,for further clarification

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

          The contact details are available in the “Contact Us” section. Thanks.

  • Haresh Trivedi

    Dear Mr.Jigar Patel,
    I am NRI and since 12 yrs I am out of India but my family leaves in India.
    I was not aware about the benefit of tax free interest in NRE accounts/FDs, so after transferring money I was making FDs for different family members including my parents and in-laws as they are senior citizens and I was treating it as a gift to them to arrange their living expenses, though no formal gift letters were made.But now father is expired ,so that money I need to take back and there is some extra money in my mother’s account as well as mother-in-law’s account which also I need to take back.
    I am filing their IT returns regularly to show this interest income which is under limit so it is not taxable.Now to get benefit of tax free interest in NRE FDs ,I want to take this money back which totals around 50 lacs.As per my understanding as this money is not taxable as IT returns were already files for the same and now I am getting it back as gift from close relatives, including in-laws, I don’t need Form 15 CB /CA to transfer it first to my NRO account then to NRE account.Please give your advice.Also let me know if banks are not aware about this change then how to proceed.

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

      It would be difficult to convince the bank to transfer without 15CB/15CA as money trail needs to be properly established. If you say it was a gift, then it is not your money. If it was not a gift, then it would be a loan so whether the loan was as per RBI rules or not. I would suggest you to talk to your CA, who helps your in tax return filing and try to convince the bank to transfer without 15CB/15CA. Else, you would need to submit the forms and comply with bank’s requirements. Thanks.

  • ajay shirke

    I have question

    I am an NRI a canadian citizen, and if I will receive some proceeds in Indian rupees into my NRO account our of a sale of my one house. Can use this to repay a NRI loan I have taken on another house from ICICI

    thanks for your answer

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

      If you have taken loan in NRO account, other NRO funds can be used to repay the loan. Please contact your ICICI bank for repayment. While they may not like it as it would result in pre-payment and loss of interest income, it is allowed. Thanks.

  • S.S.Janarthanan

    Dear Mr. Jigar Patel,
    My daughter and son in law are in U.S., since 4 years – Both were employed – My son also went to U.S. – 2 years back.

    I wish to buy a property – 180 Cents – Government Guideline Value is 78 Lacks approximately and actual rate is 50 + Document Charges are 10 Lacks.

    How to get money from son, daughter and son in law this 60 Lacks?

    My own sister’s son and so many First Line Relatives are there in U.S.,

    Please let me know how to buy this Land?

    With Respects,


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

      1. If government value is 78L, make sure you document it for 78L.
      2. As per US laws, any person can gift upto $14000 per year to anyone. For more amount, they may also give within lifetime limit of $5million but a form needs to be filed to IRS. As per Indian laws, gift from relative is allwed and is not taxable.
      3. While mother’s brother is a relative, sister’s son is not a relative so any gift from your sister’s son would be taxable for you in India. Only gift received from YOUR relative is exempt. Thanks.

  • S.S.Janarthanan

    The Total annual package what my son, Daughter and Son in Law got was

    2.44 Lacks Dollars before Tax – and they were earning this amount since 2 years.

    After deduction the amount they received should be around 1,70,8000 dollars.

    With due Respects,


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

      That is really great. They would be able to transfer funds to you as gift. For any gift of more than $14000 per year per person, they would need to declare it to IRS. If not, they would need to pay the gift tax. Thanks.

  • Mohan

    Hello Jigar,

    Was very glad to see your responses to each of every question posted by the users.
    Would be really grateful If you could help me with an answer to a question regarding repatriation.
    I was working with a firm in India till December 8,2014 and have taxable Income of INR 4.99 Lakhs(TDS was deducted ).Thereafter moved to Dubai (Left India for first time) for employment and joined on January 6,2015.Now I have few queries as follows

    1)Would income earned in Dubai from Jan 6 to March 31,2015 is taxable in India,since I am a resident there for more than 180 days?
    2)Please suggest me few repatriation rules where I need to be careful with,considering my plan to transfer my income earned in Dubai to India (Parent’s Bank account in India) treating it as Gift in their hands and creating FD’s out of them.(They were never in tax slab earlier).

    Please let me know If I can go ahead with the above steps and any other careful points from tax and FEMA point of view.

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

      1. Yes.
      2. You are allowed to transfer your foreign income in your name in NRE account and earn tax free interest. You may also give gift of funds to your parents, which would be taxfree for them. Thanks.

  • Mishka

    I am working in Chennai. I have few fixed deposits with HDFC Bank which are fixed for about 2 to 5 years from now. I also have a Jeevan Anand LIC which will mature in 2045. I am going to get married to a guy in USA through K-1 (Fiance) visa process by the end of this year or early 2016 and then acquire green card in probably another few months. Is there anything i have to do with my money already fixed in India, as well as my LIC policy, or they will mature normally as they were booked long before i would actually go abroad and acquire a green card?

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

      As long as you are okay with reporting your assets and income to USA, it is fine. However, if you do not want to report your assets/income and pay tax in USA, I would suggest to plan for the same. Thanks.

  • raj

    I am and NRI and I want to give a loan to my father in india interest free. Can I repatriate that money when they return the money back to me? What kind of documentation is required upfront so that Ican repatriate the money later to USA


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

      Yes. Interest free loan to your father is allowed and can be made on repatriable basis. However, there are certain restriction on term, and use of funds that you need to consider. Also, I would suggest you to liaison with your bank where you have NRE account about what you are trying to do and the steps/procedures you need to follow so that the money can be directly credited to your NRE account. Thanks.

  • Tony

    Hello Jigar

    I am a UK resident. An Indian resident uncle who passed away recently left property in his will to come to me. The property is in his estate and there is a buyer in India who wants to buy it. The executor has advised that the sale proceeds can go into an NRO account in my name. Approximate amount £10000.

    Question is, can I repatriate that money to me?

    I understand upto 1m USD can be repatriated, and I assume that can be translated into sterling equivalent. However, does the original source of the money need to be overseas for the repatriation to be possible? In this instance the source is India.

    Thanks in advance.

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

      You will be able to repatriate the sale proceeds of the property. As you have received the property under will, you can sell and repatriate the funds. However, as you an NRI, the buyer needs to deduct TDS (tax) on gain as a result of the sale of property before making payment to you and pay only the after tax amount to you. You would need the CA certificate in Form 15CB and you would need to file Form 15CA online and provide both to the bank to transfer the funds. Let me know if you need any help with the same. Thanks.

      • Raves Kumar

        Hi jigar , Im employed in Dubai and I’m heir to the funds left by my relative in India. It is sum of 10 crores and I want to transfer this amount to my Dubai bank account. Wht are the legal formalities and taxes involved . Will my Dubai bank accept this huge funds transfer ? Wht could be the best option for me . Pls advice and have a nice day – raves

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

          Yes, you will be able to transfer funds to Dubai and the Dubai bank would accept the funds. The amount received as inheritance or under will is not taxable. However, as the amount is very high, I suggest you contact your advisor for documentation or formalities for the transfer to avoid any future complications. Let us know if you have any question. Thanks.

          • Raves Kumar

            Thanks Jigar , for your advice. The documentation aren’t ready. Is it not possible for me to transfer this amount to my Dubai bank account, directly? I also need to check, if at all there is limit set on my savings account- Dubai bank to receive such a huge amount. What could be the fastest way to transfer this amount, if possible ? Thanks

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

            Not without documentation. The bank needs to have proof of genuineness of the transaction and the it is not relating to money laundering. Also, usually, there is no limit on receiving funds. Everyone wants more funds. Limits are usually for payments. The fastest way would be to hire a good advisor, complete all documentation requirements and wire the funds. Thanks.

          • raves kumar

            Hi Jigar, thanks for replying. I would like to know how my funds can routed to my Dubai account. Can they be transferred directly from my relative’s account to my Dubai account or they need to be routed through my NRO first ??
            As u said, there is income tax exemption on my amount of inheritance here. But NRO comes under taxation law of the govt. Please advise further, have a nice day.

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

            It can be transferred from your relative’s account provided proper documentation is available. It is not mandatory to have the amount routed through your NRO. However, as amount is 10Cr, more than RBI limit of $1 million, I would suggest to transfer to your account and then remit to Dubai. If you plan property, you could have all money transferred to Dubai by 1st week of April 2015 as the $1 million limit is per financial year i.e. April-March year. Thanks.

      • Tony

        Thanks Jigar. Just noticed your reply. We spoke earlier this week.

        Can I check what the situation for repatriation would be if, under the will, money was gifted? Can this also be credited to NRO a/c and repatriated (presumably with same us$1m limit).

        I see a lot of information on repatriation of proceeds from sale of inherited property, but little on if the actual inherited asset was in the form of liquid funds.


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

          It is always easier to inherit the funds (rupees), deposit in NRO and transfer to NRE or UK. If you inherit the property, you can only do that after paying taxes, providing documents to bank for the transfer and you would also need to file your income tax return in India. Thanks.

  • ramya

    My brother is a US resident and am located in india. Now he is offering me a job there whic I will be operating out of India. Now what is the process of transferring my salary to Indian accountil? Will I have to open a new account and what about the taxes? Which country’s income tax rules be applied.

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

      The structure of operation, transaction and money flow will be important. If you are providing service in India, and receiving money in India, it will be taxable in India as you would be an ordinary resident of India. Only if you are located outside India and providing service outside India, you would not pay tax in India. Thanks.

  • Sajeev

    Hi Jigar,

    Me and my wife are based in UAE and have FD’s in our Joint NRE accounts. We are planning to return to India for good. Once we become resident, we are planning to file separate tax returns. Is it possible to file separate returns based on income from the joint account that was opened when we were NRI’s ? My wife was also working in UAE and we were sending our savings to our NRE Account that was opened in our joint names. Is it advisable to have separate NRE accounts that can be converted to resident account to avoid clubbing of income when we become resident ? Please advise.

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

      I would suggest you to please have 2 bank accounts – one for you and other for your wife. In India, the income tax is to be filed separately. Also, it is assumed that first holder owns the account. If your savings is joint, please open another account in your wife’s name and transfer her share of savings into that account, preferably, before you move to India. Thanks.

  • Nina

    Britisher selling purchased property after 3yrs . What is the tax amt applicable on capital gain.

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

      Tax rate is 20.6% on capital gain after indexation. However, as you are an NRI, buyer needs to deduct TDS of the tax amount (1% TDS is for resident buyers). Also, buyer needs to have TAN (Tax Deduction Account Number) for deducting TDS. Let us know if you have any question. Thanks.

  • vignesh

    dear sir,
    I’m working in dubai i’m having sbi saving account in india it is possible to use this account in dubai for transferring money

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

      If you are working in Dubai, you are an NRI under FEMA. You are supposed to inform your bank of your change in residential status to NRI so that bank can redesignate your account as NRO. You may continue to use your account, cheque book and other facilities just as a resident. you would also need to open NRE account if you want to transfer money from NRO to NRE. If you want to transfer money from Dubai to India, there is no restrictions and you can transfer to your resident account as well. However, I would recommend you to inform your bank of your NRI status. Thanks.

  • vignesh

    Dear Jigar Patel,
    Thanks for your valuable info. I have another query if i’m having any uae bank account is it possible to transfer money to indian bank account by online?

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

      Yes, I would think so. Please check with your Dubai bank. Thanks.

  • AK

    Hello Sir,
    I am selling my house which I purchased in 2002. The capital gain will be around 80 lakhs I believe. In the meantime, I have received Australian PR and wan to move there. I want to use the sale proceed to buy a house in Australia. My questions are

    1. What should I do to minimize tax on the capital gain. Since only 50 lakhs are allowed to be invested in bonds, what can I do with rest of my capital gain amount avoid capital gain tax?
    2. if I chose to pay tax on entire capital gain amount then will it be 20% flat?
    3. Will I be able to transfer the post tax amount immediately to Australian bank account after getting the requisite documentation done from a CA?
    4. I was working in US on H1B and used my money to buy this house but I don’t seem to have a clear evidence to show that I used my US money to buy this house in 2002. That’s because I transferred the money to my brothers indian bank account who made the payment to the buyer. I am now repenting that had I saved the evidence, I would be in position to repatriate the entire sale proceed to my Australian bank account by paying minimum tax(1%). Any suggestions/Comments?

    Thanks in advance for your help

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

      1. There is no other way.
      2. As it is a long term capital gain, you would need to calculate the indexed cost of the property and then calculate capital gains tax. The rate of 20.6% is on capital gains after indexation.
      3. Yes
      4. There is always a money trail i.e. you can check the bank statements of your brother and yours to prove the trail. However, if you give money to your brother as a gift, it is his property and not yours. And gain would be his only. I suggest you contact your CA and clarify the matter as to who needs to whose income and who needs to pay tax. Thanks.

  • Sunil

    I have taken a insurance policy on my name from my NRE a/c and on its maturity amount will be on name of my son who is also NRI now. Can he take that amount in his NRE a/c

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

      It may depend on the FEMA rules and regulations when the policy is matured. I would suggest you to check with the insurance company or agent through whom you took the policy. Thanks.

  • Sunil

    Hi Jignesh,

    I have left a query regarding maturity of insurance policy earlier also. Need your expert advice I am NRI since last many years and taken one insurance policy from my NRE a/c 8 years back and maturity amount will be on the name of my Son who has also recently get NRI status. Can he take that amount directly his NRE a/c as all fund given by my NRE a/c. please suggest.

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

      I would suggest you contact your agent, bank and the insurance company and clear out the matter. Please note that you may also need a CA certificate for direct credit to NRE account. Thanks.

  • kamlesh Khator

    US citizenship & PIO card holder first time came in india with foreign currecncy below USD10000 and not file declaration form (CDF ) at airport and then department ( Fema, Income Tax, Custom etc ) can ask about the source for the foreign currency ?

    Under section 6 (4) Fema Act,1999.

    Please advise

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

      If it is less than $10,000, it would be okay. You may say it is from your savings out of income in USA. Thanks.

  • Manoj

    Thanks for the helpful article Jigar. Had a few questions for which I am getting different responses from my local banks.
    I currently have multiple NRE FD accounts and am a U.S. green card holder. I moved back recently and will be in India for at least 1 yr with a job here. I am going to keep my green card active but I think my status will be Indian resident since I will be here for >180 days.

    1. Will I have to convert my NRE FD accounts to resident FD accounts once my status changes or can I keep them as NRE FD accounts and avail of tax benefits till maturity?
    2. If I convert to resident FD accounts but change my status to NRE again 1 year from now, can I move the money from these resident FD accounts to NRO account and then to NRE account and then repatriate after paying applicable taxes?
    3. If the above is not possible and I have to repatriate from an NRO account, what’s the maximum repatriable amount for a fiscal year? I am seeing 2 numbers, one is $125,000 a year and another is $1 million a year. What’s the correct amount?


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

      1. As per FEMA laws, on your return to India, NRE accounts can not be maintained but transferred to either resident savings account or RFC (Resident Foreign Currency) accounts. There is no provision about immediately transfer or transfer after maturity of FDs. I would think immediately. However, the bank may have different internal procedures/requirement. I suggest you check with the respective bank where you have FDs and understand their requirements and procedures.
      2. Yes, you can.
      3. Limit of $125,000 is increased to $250,000. It is for RESIDENT Indians remitting money abroad or to NRIs – for loan, gift, investments, etc. The $1 million limit is for NRIs. Thanks.

  • Dinesh

    Dear Sir,

    I am in the process of emigrating to UAE. All my bank accounts will be designated as NRO and therefore all my savings I have in banks will be in NRO account. My question is
    can I repatriate all the savings in my NRO account to my UAE bank account ? Or only money from sale of assets can be repatriated from NRO account and nothing else ?

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

      Yes, you can transfer all the funds from your savings and sale of assets. But, only after you become an NRI (actually emigrating to UAE) and providing CA certificate and performing certain procedures. Thanks.

  • Rajesh Singh

    Dear Jigar,

    My bother in law lives in Us and he want to send a small amount to me, is it possible to get this amount in my indian bank account. it should be private bank or goverment.

    Best Regards
    Rajesh Singh

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

      The bank does not matter. Any gift from brother is tax free in India. Any gift by US resident upto $14,000 per year per person is not taxable for US residents. Thanks.

  • swati

    Hello Sir, i have a question. my huhusband is residnt allien for tax purpose in USA. We have filed a return to IRS for calender year 2013. Income tax return for india for A.Y. 2014-15 Is pending. We have earned interest on NRO n taxes on the same has been paid in USA added in gross total income. what is the procedure to file return in india ? which income tax form should we fill ? I am just confused as here we pay taxes as per calender year n there april to march. Please advice.

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

      As the tax year in both countries are different, you would have to follow respective country’s requirements. Please contact your CA or us if you need any help in filing tax return in India. Thanks.

  • Eric R

    Hello Sir,

    I am a US Citizen with a valid India Visa and held an Indian passport before I naturalized. An uncle passed away in India and has left cash in back accounts, some shares and fixed deposits.

    How can I transfer the cash, sell the shares and FDs into a US bank account and avoid or limit taxation?

    Thank you.

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

      Any amount received as inheritance is not taxable. As you are an NRI, you will be able to remit upto $1million per year. Please transfer funds to your NRO, pay tax, if any, and remit funds out of NRO or transfer to NRE and remit from NRE to your account in USA. Thanks.

  • Rajendr

    Hello Sir,
    I came to US 3 years back.
    I am getting rental income from my ordinary savings account.
    I have fixed deposit amount(2 lakhs each) in both ordinary bank account and also NRO account.
    Still I am using the Demat account for buying & selling the indian stocks.
    I have purchased an apartment in india and loan taken for 40lakhs in NRO account.
    After i come to USA 3 years back,i didn’t filed the taxes.
    I have couple of queries please clarify and suggest the same.

    1) What are all the documents that i need to submit for filing the incometax now (for the last 3 years).
    2) Do i need to pay any penality for the same.
    3) Please advice me how to manage this in future.


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

      You would need to inform your bank and DP that you are an NRI and change/re-designate your accounts accordingly. As per income tax laws, you can file tax return for maximum of 2 years. March 31, 2015 was the last date to file tax return for financial year 2012-13. Now you can only file tax return for 2013-14 and 2014-15. Please contact us if you need any help with filing taxes. Thanks.

  • Rekha

    Hi Jigar,

    Question – I am US Citizen and have a NRE/NRO account which I recently open to buy property in India. I transferred my savings from USA to this account and it was material balance. I believe I need to report this in the FBAR filling along with my US return. Any consequences of material amount reflected on FBAR filling ?

    Historically I had other accounts in India which are not NRE/NRO and use to transfer money to these accounts to support family expenses. Sometime the balance did exceed the required threshhold but I never reported those accounts along with my US tax return. I recently closed those account and opened this new account. What are the consequences of not disclosing those accounts??? what is your experience regarding these?

    Thanks for your advice.

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

      1. As long as your amount is after tax money from USA and you report the balance and any income, there is no consequences.
      2. I would suggest to contact your CPA and seek professional guidance. You may choose not to forget about it or consider one of the voluntary disclosure initiatives of IRS. Thanks.

  • Harish Sharma

    Hi, I have a question. I am selling a property in India which I have owned since 2005 as an NRI Living in USA for last 17 years. I need to know the buyer will deduct 1% TDS can I deposit the funds into my local NRE or NRO bank. I would like to avoid paying capital gains as I would be re-investing in a year. Please advise.

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

      1% TDS is for residents selling property. The buyer needs to deduct TDS @ 20.6% as you are an NRI. Funds can be deposited in NRO and then after CA certificate and certain procedures, funds can be transferred to the NRE account. If you do not want buyer to deduct TDS @ 20.6%, please approach your Income Tax Officer and obtain lower deduction certificate. Thanks.

  • Vasu

    Hi Sir
    I live in UK as an NRI ( British passport holder) and want to sale my property in India which I bought 7 years ago. I would like to know that if I get the buyer and I need to make a visit to India then what documents should I carry with me from UK to India for the sale of the property as well as repatriation of the money so that it does not delay the sale as well as save me numerous trips from UK to India.
    Please reply.

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

      You do not need to make any trips to India for selling the property if you give the Power Of Attorney to someone to sell and register the property. Also, no physical presence required for transfer of funds from India to UK as you may sign the documents in UK and mail them to bank. However, you may decide to visit India to negotiate and finalize the deal with buyer for maximum price/benefit. Please note that as you are an NRI, the buyer needs to deduct TDS @ 20.6% (TDS @ 1% apply only to resident sellers) and some additional procedures to be performed. Please contact your CA before you make a trip to India. Thanks.

  • Penuel

    First of all thanks for the wonderful information you are sharing on your website. Greatly appreciated.

    My question could be unrelated but I am not able to find a relevant place so I am posting it here, with a hope to get an answer.

    I do a software business and I provide services to one of my client in US. He is willing to make me payment directly in INR instead of transferring a USD amount to my EFC current account which I setup to accept payments in USD. Is it legally ok to receive payments in INR directly from US bank account for commercial purposes/businesses or are their any restrictions applied to it by Indian laws.

    Looking forward to hear from you.


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

      As long as money coming in through normal banking channel, it would be okay. However, you would need to check whether it qualify as export or not, if you are taking any tax or other benefit for export of service. Thanks.

  • Geetanjali Kumar

    My friend is an NRI and has sold a property in India jointly held with her husband.
    The buyer deposited the money in the NRO account of which she and her father are the account holders.The TDS was not done on Long term capital gain.She now wants to transfer the money in the NRE account.There are 2 NRE accounts.One in her name only and one in the name of her husband.
    The bank is asking for 15CA and 15CB.However since tax was not deducted when the Tax should have been deducted,what recourse does she have?

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

      1. Who owned the property, i.e. paid for the property. Person who paid for acquisition is the owner as per income tax.
      2. the money should be credited in the name of owners i.e. #1
      3. TDS is mandatory as seller is an NRI.
      4. If TDS is not deducted, seller to pay advance tax and then transfer the funds from NRO to NRE
      5. CA certificate would be required. If property owned by 2 persons, 2 certificates and procedures for NRO to NRE needs to be followed for both accounts. Please contact us if you need our services. Thanks.

  • prats

    Dear sir ,

    would like to know below , I am a NRI and leaving abroad since last 4 yrs .
    1) I have done FD’s in NRE account would like to know is there any tax deducted on interest from NRE by bank while payment on maturity .
    2) I have some income in india too for which I am filing IT return and FY 13 -14 I have filled 1.5 lacs which is still in bank account can I make this FD and start to earn interest .
    3) is post office 5 yrs FD under MIS scheme taxable the fixed deposit and interest

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

      1. Interest on NRE accounts is tax free and TDS is not deducted or tax is not to be paid.
      2. Yes you can. however, it will be i NRO and TDS would be deducted. You may transfer the funds to NRE and make an FD to earn tax free.
      3. As an NRI, you are not allowed to invest in any Post Savings schemes. Anyway, the interest is taxable. Thanks.

  • Nikhil Patel

    Dear Jigar

    I have a question hoping you will be able to guide me.

    My dad must had opened a demat account for me when I was young in India. He had bought many stocks for me and took care of that account. He recently passed away and stock account value is ~2 crore. I wasn’t even aware of this account until recently. I’m US citizen now. This demat account is connected with resident savings account. I was told that no stocks were sold by my dad so they been there for years and have no tax implications. What do I need to do to sell all stocks, close the account and transfer money to US account? I don’t have any NRO or NRE account. Thanks

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

      You may transfer the funds from resident account to NRO account and then to NRE account. However, I would suggest you contact your CA or us to sell and then remit funds while complying with RBI and income tax laws. Thanks.

      • Nikhil

        Thanks for the information.

        To open NRO account, I need to have valid work permit or employment visa. I don’t have these since I work in USA. Also deposit to NRO account is only available in form of transfer from NRE/NRO/FCNR (B) accounts. How can I transfer from local resident Indian account?


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

          If you work in USA, you are a NRI. You may also give your work or student VISA or greencard or US passport to prove that you are an NRI and a bank would be more than happy to open your account. Technically, if you tell your bank that you are an NRI, they would re-designate your current regular savings account into NRO. If you want to open a new NRO account, let me know if you have any problem and I can give you name of 5 banks who would be ready to open your accounts. Thanks.

          • Nikhil

            Thank you sir.

            Per bank, funds deposits in the NRO account can ONLY be in the form of transfer from NRE / NRO / FCNR (B) accounts or fresh remittance from overseas. OR from Interest, dividend and maturity proceeds of investments made in India etc on non-repatriable basis.

            So how can I transfer fund from local resident account to NRO?

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

            I am not sure why bank is not crediting the inheritance money. If required, please make a declaration to the bank that it is the inheritance money on death of my father and provide death certificate. However, as you have inherited shares, you would need to open a Demat account linked to your NRO account under PIS and then when you sell the shares, the money will directly credited to your NRO account. Thanks.

  • Wasim

    Dear Mr. Patel
    I have NRE/NRO account in HDFC rural bank in India
    can you guide me how much maximum amount i can tranfer from NRO account to other bank through one check only without Tax or any charges.

    please elobarate.

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

      There is no limit on transfer of funds from one NRO to another NRO account. The limit is on transfer from NRO to NRE account as it is considered remittance out of India. The limit for remittance out of NRO to NRE is $1 million per year per person. Thanks.

      • mmathews

        As per RBI notification, transfer from NRO to NRE after TDS deduction at souce is limited to 1 million USD or it’s equivalent.
        My question is:
        1) Why this is linked with USD? If the original conversion from FCNR to NRE/NRO was in the other few permitted currencies i.e.GBP/Euro/AUD/Jap.Yen,why the limit cannot be linked with same currency at time of repatriation, especially when there could be great changes in exchange rates.
        2) This limit per year should per Accounting year or F/Y?

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

          1. As USD is the viewed as the most trusted currency and has the least probability for manipulation or severe fluctuations, USD is used as a benchmark. You are allowed to trannsfer the funds in EUR, GBP, JPY or any other currency but the limit is fixed in USD. For example, you transfer GBP 500,000 (est. USD 650,000), EUR 200,000 (est. USD 230,000), you would have only equivalent of USD 120000 to transfer out of India in a year.
          2. In India, Accounting and Financial years are the same. The year is April 1 to March 31. Thanks.

  • i venkata ramana

    We have nro account cheque that cheque deposit in nre account ?

    pls let me know

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

      Not allowed. Can’t be done except you obtain and submit Form 15CB/15CA that tax, if any, have been paid. Thanks.

  • Mohanbhai

    Hi Sir

    I would like to wire transfer $100K from India to my son in USA. I intend to send the money under the $200,000 gift route and/or under the family maintenance facility. I need your advice with following questions-
    Is there any tax liability for me?
    Will there be any tax incidence on me?
    What kinds of form(s) I will need to fill?
    What kind of information these forms require?
    Also is it a fairly simple process or income tax dept makes it complicated???

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

      You would just sign a form and declaration that you want to give gift to your son to your bank and the bank would remit the funds. There is no tax implication for you and it is very easy and straight forward process, unless your bank does not have any experience in foreign exchange and does not know what/how to do the transfer. Thanks.

      • Mohanbhai

        Thank You Sir.

        Which form do I need to fill? Is there a name of the form?

        Thank You

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

          Form A2 – Application / Declaration for sending money abroad. You just contact your local bank and the bank will provide the form. Thanks.

      • subhash

        Hi Jigar,
        I have moved in recently to UK. Can you please tell me how many NRE and NRO accounts can one NRI hold?


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

          There is no limit of number of NRO or NRE account. However, I would recommend only 1 for practical purposes and both in the same bank/branch where you have good contacts or can easily liaison. Thanks.

  • Geetha Murthy

    Dear Mr Jigar Patel
    I have property in Bangalore in my husbands name he cannot travel to India because of health issues, I already have power of attorney for all the matters in USA, do I need to take POA FROM MY HUSABND AGAIN IF I NEED TO SELL THE PROPERTY IN INDIA,I need ur advice I will be very greatful. WE ARE US CITIZENS.
    CAN I ASK YOU TO HELP me WITH THIS MATTER.,willing to pay for your services.
    Geetha Murthy

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

      Please make sure you have a POA that allows you to sell property in India. Please contact on our email if you require any service. Thanks.

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