• NRI tax filing and money movement from NRO to NRE

I am an NRI living outside India for more than 20 years. I hold an OCI card. I get rental income and interest income in India. I have been filing taxes as an Indian citizen for the past 10 plus years as my income is deposited in a local savings account. I know it is not legal to maintain any local accounts if a person is living outside. If I deposit income in NRO accounts, banks were charging the TDS on interest at 30% and also my tenant(a bank) was deducting 30% TDS. So I asked my tenants to deposit the rent in a local savings account. If I file taxes as a NRI, do I get back the rest of 20% excess TDS amount back as I fall under 10% tax bracket (15 lakhs per year). At the moment I am taxed at 10% as I am filing taxes as a local resident. Are income tax slabs for resindent Indian and NRIs same? Is there any way I can move existing money from local saving accounts to NRO then to NRE without paying any extra taxes or penalty as I already paid taxes and filed taxes for all the income. I heard that to move money from NRO to NRE account, CA has to certify so bank allow to move money from NRO to NRE. How much CA charges to certify my taxes to move money from NRO to NRE?
Asked 1 month ago in Income Tax

Dear Sir/Mam,

Good morning.

 

I am CA Sagar Basu, practicing chartered accountant in Mumbai. I can answer your queries on by one.

 

 1. I have been filing taxes as an Indian citizen for the past 10 plus years as my income is deposited in a 
local savings account

- Pls convert it to NRO A/c

 

2. If I deposit income in NRO accounts, banks were charging the TDS on interest at 30% and also my 
tenant(a bank) was deducting 30% TDS.
- As you are US citizen there was DTAA agreement between India and USA and TDS on interest is 15%

3. If I file taxes as a NRI, do I get back the rest of 20% excess TDS amount back as I fall under 10% tax bracket 
(15 lakhs per year)

-
Definitely you will refund back

 4. Are income tax slabs for resindent Indian and NRIs same?
- Yes it is same.

5. Is there any way I can move existing money from local saving accounts to NRO then to NRE without paying 
any extra taxes or penalty as I already paid taxes and filed taxes for all the income.

-
Yes it is possible but there are following procedure. You need to fill 15CA and get 15CB form CA and other formalities
and other formalities as required by bank.

Hope I have answered all your queries. Please connect with me for further clarification or queries.

Regards
CA Sagar Basu

+[deleted]

 

Sagar Basu
CA, Kolshet Road Thane
4 Answers

Not rated

Yes you will get refund from excess tds deducted by bank and tenant. The query of having to transfer from local to NRO and then NRE could trigger penalty in FEMA law and also attract TCS but mostly no issue under Income tax law.

 

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Thank you.

Naman Maloo
CA, Jaipur
4288 Answers
98 Consultations

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Managing NRI Tax Filing and Money Movement

As an NRI with an OCI card, here’s a streamlined approach to managing your rental and interest income, tax filing, and money movement:

  1. Tax Filing and TDS Refund:


    • Income Tax Slabs: The tax slabs for NRIs and resident Indians are the same. However, NRIs do not get some exemptions available to residents.

    • Excess TDS Refund: Since your income falls in the 10% tax bracket, file your tax return as an NRI to claim a refund for the excess TDS deducted at 30%.

  2. Managing Bank Accounts:


    • NRO Account: Open an NRO account for your rental and interest income. As an NRI, you should not hold a resident savings account.

    • Transfer Process:

      • Transfer funds from your local savings account to your NRO account.
      • Engage a Chartered Accountant (CA) to certify your taxes using Form 15CB.
      • Submit Form 15CA to the bank to transfer funds from your NRO to NRE account.

  3. CA Certification:


    • Charges: CA fees for certification typically range from INR 3,000 to INR 10,000, depending on the complexity of your transactions.

Steps to Follow


  1. Open an NRO Account: Ensure all Indian income is deposited here.

  2. Transfer Funds: Move money from your local savings account to the NRO account.

  3. CA Certification: Get a CA to certify your taxes (Form 15CB) and submit Form 15CA to the bank.

  4. Transfer to NRE Account: Follow the bank’s procedure to move funds from NRO to NRE.

  5. File Taxes as NRI: File your tax returns to claim any excess TDS refund.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

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- Being an NRI, all income received in India should be credited to NRO account 

- File ITR as NRI. If TDS deducted will be more than the final tax liability then the remaining amount will be refunded

- Slab rates are same both for resident and Non-resident

- For transfer from NRO to NRE A/c, you have to submit Form 15CA

- Update your residential status with the bank, tenant and other institutions

- Convert regular saving bank account to NRO or NRE A/c

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

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