Transferring funds from a Non-Resident Ordinary (NRO) account to a Non-Resident External (NRE) account in India is subject to certain regulations and conditions outlined by the Reserve Bank of India (RBI). Here’s a step-by-step guide to help you with the process:
Key Conditions for Transfer
- Purpose: The transfer is permitted for legitimate reasons like repatriation of income or savings.
- Tax Compliance: The funds must be from income that has been tax-compliant in India (e.g., rental income, dividends, or proceeds from investments).
- Transfer Limit:
- Up to USD 1 million per financial year can be transferred from an NRO to an NRE account.
- This limit includes all remittances outside India from the NRO account.
- Supporting Documents:
- Form 15CA: Declaration of remittance details.
- Form 15CB: Certification from a Chartered Accountant ensuring tax compliance.
- Any other bank-specific documents as required.
Steps to Transfer Funds
- Tax Deducted at Source (TDS):
- Ensure the income in the NRO account has been subjected to applicable TDS.
- Obtain necessary documents, such as a TDS certificate (Form 16A).
- Prepare Documentation:
- Complete Form 15CA online through the income tax e-filing portal.
- Have Form 15CB certified by a Chartered Accountant.
- Gather other required documents like the source of funds proof, NRO and NRE account details, and identity proof.
- Submit Forms to Your Bank:
- Provide the bank with Form 15CA, Form 15CB, and any other required documents.
- Some banks might require additional forms specific to their transfer process.
- Initiate the Transfer:
- Submit a written request or use the bank’s internet banking platform (if they support such transfers).
- Confirm all details before initiating the transfer.
- Verification and Approval:
- The bank will verify the documents and process the transfer.
- Ensure compliance with any queries raised by the bank to avoid delays.
Things to Note
- Ensure that both your NRO and NRE accounts are held with the same bank to streamline the process.
- Consult with your bank for specific rules or additional documents that may be required.
- Be aware of currency conversion charges, if applicable.
Would you like assistance with any specific step, such as preparing Form 15CA or understanding bank requirements?
