I made similar transfer successfully without much efforts. All you have to give a undertaking to bank stating that you remittance is less than 1 Million USD in the financial year and CA certificate form 15ca/cb. CA certification arranged by bank in my case. Please initiate this transfer quickly as the attractive interest rates are falling day by day.
Which bank was it ? Did you have to go to india to get CA certificate ?
I have a doubt with respect to transfer of funds from NRO to NRE. Let me start with the facts first.
I had transferred around Rs. 35 Lacs (between 1 April 2011 to 31 Dec 2011) to my NRO account in my ICICI bank. Thereafter I transferred the money to my father's bank account (he is a resident) and he made the FD of the same in his name to take benefit of senior citizen interest rate and also because I was not present in India to make the FDs in my name. He has paid all the taxes on this money / FD as per the IT act. Currently in my father's balance sheet he is showing FD in Asset side and amount recd from me as a liability; similarly in my balance sheet I am showing amount receivable from my father as asset. Now I want to transfer this money into my NRE account and make the FD again in my name to take benefit of tax free high interest rate in NRE FD. I can ask my father to break his FD and transfer the funds back into my NRO account. This will also settle his liability towards me. I dont remember paying any tax considering the fact that I didnot earn any money since I had transferred funds into my father's account for which I did not charged any interest.
Question: 1. I want to know if I can transfer the funds from the NRO to NRE considering the above facts. 2. Will there be any change in the procedures what were mentioned in the previous quotes in this thread.
1. Amount lent to your father can be credited in your NRO account upon repayment .
2. Under Foreign Exchange Management Act 1999 (FEMA), amount can be lent to resident Indian on non repatriation basis.
3. As there are certain restrictions regarding utilization of said funds by loanee.
4. Upon re-credit of repayment amount in NRO account you can transfer the funds into NRE account.
.02 Bank may require evidence regarding said amount being lent to your father and compliance of provisions of FEMA.
5. Procedural aspects for transfer are similar to Repatriation of NRI balance under US$ 1mn scheme.
Hello I have funds sitting in my NRO account and other funds that are currently invested in mutual funds and equities. All of the funds in the NRO account are from dividends and capital gains and interest that this money earns in the account. TDS is being deducted by the bank at 30% rate. I would like to transfer this money into my NRE account and continue doing so as I sell more of my equities and mutual funds in the future. I know RBI now allows transfer from NRO to NRE account subject to tax having been paid. Can anyone explain what additional tax I have to pay to make this happen and what is the rate. My tax returns have been filed by my CA every year.
I am a NRI. My question is if my parents become NRI by living with me outside India, can they have their FDs in resident Indian a/c to be transferred to NRE a/c? This money is not repatriated by me though, these are their savings in INR.
