Is it possible to transfer money from NRO to NRE account?
You are allowed to transfer money from NRO to NRE account up to USD 1 million in a calendar year
NRIs manage their expenses in India through two accounts- the Non Resident External (NRE) account and the Non Resident Ordinary (NRO) account. The NRE account is meant for transferring foreign earnings to India. On the other hand, NRO account is used to manage income earned in India.
How to transfer money to NRE account? How to transfer money to NRE account from USA? These are common questions many NRIs have. There are several ways in which you can transfer money to an NRE account from abroad. The money is deposited in Indian rupees.
Another question you may have is- can I deposit money in NRE account from India? You cannot transfer money to an NRE account from a savings account in India. However, you can transfer money from NRO to NRE account. You can also transfer money from one NRE account to another.
RBI announcement: On May 7, 2012 the Reserve Bank of India (RBI) permitted funds transfer from NRO to NRE account, subject to certain conditions. Before 2012, this was not permitted. The limit of money that can be transferred is USD 1 million in a financial year.
Pay your tax: Interest on NRO accounts attracts tax. On the other hand, interest on NRE accounts is tax free. So, it is important to pay required taxes before you move funds from NRO to NRE account.
Documents required: To transfer funds from NRO to NRE account, please keep the following documents ready.
Documentary evidence of source of funds
15CA
15CB - Form 15CB needs to be obtained from the chartered accountant
UDIN mandatory only if 15CA Part C is filled
Filling form 15CA: Filling form 15CA involves the following steps.
Login to the Income Tax India website, www.incometaxindiaefiling.gov.in
Input your User ID (PAN) and password
After logging in go to the option- ‘E-file- Prepare and Submit Online Form (Other than ITR)’.
Select form 15CA.
You will find instructions to fill the form
The form is in four parts- Part A, Part B, Part C and Part D.
Complete filling the part that is applicable to you.
Once you have filled up the form, verify and submit
Click on the form and take a printout. Also take a printout of the acknowledgement slip.
It is recommended that you get in touch with your Tax consultant in India to understand the different parts in form 15CA.
Click here to transfer funds from your HDFC Bank’s NRO account to self HDFC Bank’s NRE account through our Paperless Digital journey. In case you have only NRE account or NRO account with HDFC Bank then Click here to instantly open a subsequent NRO account or NRE account respectively.
If you wish to open a new NRE and NRO account then Click here to Apply now!
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
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