Abhay Salunkhe (32 Points)
17 February 2023Can I get income tax refund in foreign bank account.
If the answer is yes what is the procedure for claiming the refund in foreign bank account.
Can anyone help me in this matter.
Thanks
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177852 Points)
Replied 17 February 2023
For NRIs it is possible, if the assessee doesn't have any account with Indian Bank.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 17 February 2023
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 18 February 2023
From last 2-3 years, tax department modified forms to incorporate foreign bank account details for receiving refund in case of non-resident assessee. However practically, they haven't processed any such refunds as I found in all of my client cases.
When inquired, they suggest me to open bank account in India and then get it repatriate to foreign bank account. Many bank's has the facility to open temporary bank account for receiving income tax refund which can be closed after repatriation of refund.
Regards,
Manoj
Chandrasekaran K
(Engineer)
(27 Points)
Replied 22 April 2023
Manojji,
How can an NRI with a PAN Card (no aadhar) open a temporary account for tax refund? Bangalore IT helpdesk told me I can open virtual account for tax refund and then close the account after moving the money. But no bank has any information on how an NRI can do this. Suggest some bank names as well as any link available.
Thanks
mohan thekkinghat
(4 Points)
Replied 20 May 2024
The ITR 2 form for Assessment Year 2024/25 has a column which specifies that a Non Resident can opt for "NO" answer to the existence of bank account in India. Further, there is a column meant for giving Foreign Bank Account details like Swift code, IBAN etc for those Non Residents claiming refund and not having bank account in India. Perhaps this in line with the circular issued by Income Tax on 24th July 2017 by its Official Spokesperson. However, this circular is side stepped as the online site of Income Tax does not provide the facility to key in these Foreign Bank Account details. When the "NO" option is chosen to the existence of Bank Account in India, a message prompt is displayed reading " currently, the tax refund is sent only to bank accounts in India and not to a foreign bank account". The query to this distorted picture does not elicit any direct reply. It is sad that what is intended and publicised earlier is given a go-by. I am not sure which bank in India will temporarily allow opening a NRO account for the purpose of receiving tax refund alone. I feel it is a big let down by Income Tax to NRIs despite their promise made earlier.
CAclubindia
