NRI taxation

No penalties as such, but bank would be answer that in a better manner. It's just a self declaration.

Transfer from NRO to NRE would need Form 15CB CA and Form 15CB would be issued by CA after checking that the money you are sending to NRE, tax has been properly paid on same.

DTAA doesn't provide any relief from the money deposited in NRO account.

There is a requirement of 15CB as mentioned above.

NRO account taxation and interest is more or less similar to normal saving account.

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Thank you

Hello,

You would be required to first convert your savings account to NRO account and open an NRE account for your foreign earned income transfers. There won't be any penalty.

You cannot transfer the amount from a savings account to NRE Account. The money can be transferred from the NRO account to the NRE account.

NRO account is used to deposit your Indian incomes and that would be taxable in India. Your foreign earned can be transferred to your NRE account from your foreign account. 

You should talk to your bank regarding the interest rate and transfer to an NRO/NRE account in a different bank.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Hi,

1. Practically, there will not be any tax implications as such. As far as FEMA is concerned, a penalty upto 3 times of amount involved or 2 lacs (if amount is not quantifiable) may be levied.

2. You can transfer upto USD 1 Mn. per year under NRI transfer scheme on submission of documentary evidence and certificate from a chartered accountant in the prescribed format. Remittance exceeding $1 million will require special permission from the Reserve Bank of India (RBI).

Under the income-tax law, the remitter is required to furnish prescribed information electronically in Form 15CA (self-declaration) based on a certificate obtained from a chartered accountant in Form 15CB, wherever applicable, on any payments made to an NRI.

3. You can't save taxes if the money is in NRO. Even under DTAA, it would be taxable in India.

4. Yes, you can transfer subject to necessary docs required by the banks. Each bank has their own set of requirement.

5. Sorry, You need to check it with the bank.

Dear Sir,

Hope you are doing well !!

It is advisable to take a phone consultation for detailed discussion.

1. There would not be any tax compliance's. It is a contravention of FEMA. You had to report your status in July 2018. In NRE and NRO account, there are permissible credits and debits as per FEMA. I am not sure about the penalty but it can be Rs.2 lacs where the amount of contravention is not quantifiable or thrice the amount of contravention where it is quantifiable and Rs.5000 per day in case of continuing contravention.

2. Transfer is not allowed from resident to NRE account.

3. Resident SB account will be converted to NRO account. Repatriated amount will not be taxable again. As I have said earlier, it is not a contravention of income tax law.

4. Yes upto USD 1 Million

5. FD status will not change. TDS deduction on the interest will get changed.