Transferring money to India from US
As I'm not much familiar with financial terms, can you please advise the best way to transfer money to India. Please find my facts below
1. I left India to US on Sep-06-2015
2. Took 10 days holidays in January
3. Till date (June-09-2016) holding my Job in us
4. May come back to India by next month and may not come back
5. I have a resident account India which is linked to my housing loans
6. Haven't yet transferred any money to Indian account yet.
1. What is the best way to transfer money to save tax as I'm paying tax here in us.
a. Open an NRE a/c and Transfer
b. Convert existing resident A/c into NRO and Transfer
2. What should I do to avail DTAA to get a reduced TDS?
a. Is it bank specific, I read that ICICI is offering DTAA benefits for NRO account but Axis bank is not according to their customer service?
c. I guess that all the banks should use the DTAA to avoid double taxes since this is a rule in India, am I correct?
3. What is the tax implication on transferring money to my wife's bank account or to my existing resident account or even sending money (through WU) to my parents?
Asked 8 months ago in Income Tax from Trivandrum, Kerala
Sir in the present case if the taxes are already paid in US then there is no need to worry. You can transfer the amount to your wife's Account. There will not be any taxes.
Also if you want you can open a NRE account and transfer.
Talk to Shyam Sunder Modani
4.7 on 5.0
Please find the response below:
1. Overall, the choice between an NRE and an NRO fixed deposit boils down to your preferences according to the benefits that you can avail out of the two types of accounts. A point to remember here is that NRE accounts are used to park foreign earnings in Indian accounts and in INR, while an NRO account is used to park funds earned from India..
2. You dont need to avail any DTAA benefit as you are not paying taxes in two countries and DTAA beneifts are not bank specific.
3. There are no tax implications on transferring the money if you have paid taxes in US.
Please feel free to revert in case of any doubts.
Thanks and regards
CA Abhishek Dugar
Talk to Abhishek Dugar
5.0 on 5.0
Considering the facts provided by you, it appears that you are merely remitting the Income earned in US. The same shall not be in any way taxed in India, so the benefit of DTAA doesn't arise.
2. You can either open up a NRE A/c or transfer it to your Wife or use Western Union as an option considering the cost benefit analysis.
Trust this clarifies your query.
Please feel free to call/ get back in case of any further clarifications.
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Talk to Rohit R Sharma
5.0 on 5.0