Transfer fund from NRO to NRE account
To transfer funds from NRO to NRE, NRIs must submit Form 15CB from a chartered accountant and file Form 15CA after paying applicable taxes. Today’s Ask Wallet Wise explains how investing directly from NRE accounts helps avoid repatriation issues later.
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I am an NRI working in Saudi Arabia and have invested about Rs 36 lakh in Indian mutual funds through my NRO account. After redeeming these investments, what are the rules and requirements for transferring the amount back to my NRE account for an NRE fixed deposit?
Expert’s Advice: As per RBI guidelines, an NRI can remit or transfer a maximum of $1 million per financial year from his NRO account to his NRE account. Since the amount you want to transfer does not exceed $1 million, you can transfer the same in one year without approaching the central bank.
To transfer the money from an NRO account to an NRE account, you will need to produce a certificate from a chartered accountant certifying that all applicable Indian taxes on the amount being transferred have been paid.
The certificate is issued in Form 15CB, while the transfer application must be filed in Form 15CA. Once any tax liability on your mutual fund investments is settled, the funds can be moved from your NRO account to your NRE account.
I would advise NRIs to invest directly from an NRE account, instead of routing funds through an NRO account, as this helps avoid complications when repatriating money outside India.
Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.