On May 7 2012 RBI has come up with circular to transfer money from NRO to NRE
My bank manager is not sure of steps/procedures/documents that need to be submitted. Does this mandate form 15CA/CB from my auditor?
18 Replies
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 02 June 2012
Yes, Form 15ca/cb compliace shall be required.
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 05 June 2012
It has been recommended that the NRIs/PIOs may be permitted, to transfer repatriable funds from their NRO account for credit to their NRE account in India. Prior to this recommendation transfer of funds from NRO to NRE account was not permissible.
Criterion to avail this Circular are:
- Transfer of repatriable funds only
- NRI (as under FEMR) shall be eligible
- Maximum limit $ 1 Million USD per financial year (i.e., approx INR 5 Crores)
- Taxes shall be deducted on such transfer, if any
- Transfer shall be to the same NRI’s NRE Account
- Transaction to be authorized/certified by a CA under Form 15CB/CA.
- PAN in India
Ronald DSouza
(maint super)
(25 Points)
Replied 16 June 2012
If money transferred from NRE to NRO then I think when we convert back as per new rule not required to pay any tax.
In my NRO AC I not made any cash or other local deposits.
So when I convert back is I have to pay tax?
Is anyone CA in Mangalore help me to fill up this 15CA form?
ATUL U ANAVEKAR
(Proprietot)
(160 Points)
Replied 16 June 2012
Dear Mr Arihanth,
Small doubt,, I understand that CA should issue certificate in Form 15CA and 15CB for tranferering funds from NRO to NRE.
In Form 15CB, what should we mention has NATURE OF REMITTANCE.
Secondly, it is mentioned in the circular that the tranfer is possible subject to payment of taxes,,,, what tax will such conversion attarct.
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 19 June 2012
Taxes may be deducted on the interests earned on such NRO deposits.
| Originally posted by : Ronald DSouza | ||
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If money transferred from NRE to NRO then I think when we convert back as per new rule not required to pay any tax. In my NRO AC I not made any cash or other local deposits. So when I convert back is I have to pay tax? Is anyone CA in Mangalore help me to fill up this 15CA form? |
 |
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 19 June 2012
Repatriation of surplus funds may be apt nature.
|
Originally posted by : ATUL U ANAVEKAR |
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Dear Mr Arihanth, Small doubt,, I understand that CA should issue certificate in Form 15CA and 15CB for tranferering funds from NRO to NRE. In Form 15CB, what should we mention has NATURE OF REMITTANCE. Secondly, it is mentioned in the circular that the tranfer is possible subject to payment of taxes,,,, what tax will such conversion attarct. |
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ATUL U ANAVEKAR
(Proprietot)
(160 Points)
Replied 19 June 2012
Dear Arihanth,
Thanks for your support. One last question wrt Form 15CB, since the NRE and NRO accounts are miantained in India only, I belive country to which remittance is made would be India and currency would be INR.
Please correct if Iam wrong.
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 19 June 2012
Yes, your correct.
In this peculiar case of form 15cb/ca, the currency will be only INR. And also the remitter & beneficiary shall be the same persons.
vishal kulkarni
(Chartered Accountancy Firm)
(23 Points)
Replied 12 July 2012
HI,
CAN YOU PLS CONFIRM ABOUT THE TAX IMPLICATION ?
IE. FUNDS ACCUMULATED IN NRO ARE FROM DIVIDEND & INVESTMENT INCOME, WHICH WOULD SURELY NET OF TDS....AGAIN WHILE REMITTING THE FUNDS FROM NRO TO NRE....DOES ANY TAX DEDUCTION OR IMPLICATION ARISES ?
THANKS IN ANTICIPATION.......PLS REPLY
ATUL U ANAVEKAR
(Proprietot)
(160 Points)
Replied 12 July 2012
No Further Tax Implications on transfre of funds from NRO to NRE
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 15 July 2012
Such remittance does not attract any other taxes apart from Income tax which in your case seems to have been covered in tds.
Arvind K
( )
(70 Points)
Replied 28 July 2012
Arihanth Sir, thanks for sharing this valuable information. Can you please provide a detailed article on this form 15ca & form 15cb for benefit of all. Many of us have plenty doubts.
Swapnil Shah
(Sr. Software Engineer)
(21 Points)
Replied 03 December 2013
Hi,
I am currently working in USA on H1B visa. Well, I had transferred some funds from my local US bank account to my Dad's Bank Of India savings account somewhere in the mid of 2011. I also do have an ICICI bank NRE and NRO accounts. But now I want to transfer that money back to US, so my dad recently deposited all the corresponding funds into my NRO account from his local ICICI bank account through which I will be transferring it into my NRE account. Is it fine in this case that the bank from which my dad has made transfer to my NRO account could be any other bank than Bank Of India? Meaning, since I transferred money to my dad's Bank Of India account from US in 2011 does he now have to use the same bank account to deposit funds into my NRO account?I have submitted all the required documents for NRO to NRE transfer including 15CA Form, Chartered Accountant duly signed and stamped 15CB Form, Transfer request letter and all the supporting copies of proof of transactions, but still I am facing problems for transferring funds from NRO to NRE.
Thank you for all your help.
Waiting for your response.
Swapnil Shah.
Mayur J.Desai
(Chartered Accountant)
(22 Points)
Replied 27 May 2014
Pls confirm
i want to give certificate form 15CA & 15CB
Fund Received in Pound GBP 54993.82 FCNR A/C & credited to this fund India NRE a/c Rs.4135251/- & after that this amount take NRO FD with interest Rs.5572711/-(interest amount Rs.1437460/-)
This amount i.e 5572711/- with interest transfer to NRE a/c
Bank wants certificate from CA ( Fund transfer from NRO to NRE -only because of TDS issue -i.e nil TDS)
my question is how much amount i will consider in certificate with interest or not.
Regards
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