srinivas (Manager) (31 Points)
09 December 2013Dear Friends,
I have a savings bank account in India.. Now, I am working in abroad and I am transferring my earnings through UAE to my account in India from time to time.
I would like to know, on these Income which I am transferring to India from abroad, will attract any taxes or is there any limit to such transfer of amount per annum etc.,
It would be great help for me if somebody clarifies my query ..
SRI
Ashok
(Industry)
(416 Points)
Replied 09 December 2013
There is no income tax on this transaction.
Are you transferring these amounts to your regular savings account in India? How is the conversion happening since you will be transferring in AEDs (just curious).
Another option is to open Resident Foreign Currency account with an authorised dealer in India and transfer the money into this RFC. The money will be retained in fx and you use it for fx transactions again. (Save on frequent conversion charges).
srinivas
(Manager)
(31 Points)
Replied 09 December 2013
Dear Mr Ashok,
Can you please elaborate AED..
I do not want any further transactions to do with fx.. as I just want to use this money in India only.. So, is there any other use in opening the Resident Foreign Currency account ?
Ashok
(Industry)
(416 Points)
Replied 10 December 2013
AED is United Arab Emirates Dirhams.. You are transferring amounts from AEDs to INRs right.
Ashok
(Industry)
(416 Points)
Replied 10 December 2013
You can open an RFC or an NRE account. In the latter the amounts are held in rupees. But otherwise has similar features to RFC. That is you can repatriate the amounts back when in need. Interest in an NRE account is tax exempt. You should consult your foreign bank for details.
CAclubindia
