Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)

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This query is : Resolved

Kapil1978

Kapil1978 (Querist)

08 October 2026 Dear ICAI NRI Helpdesk Team,

I’m seeking your guidance on the correct FEMA and tax requirements for a three‑step transaction involving a domestic gift, an NRO → NRE transfer, and a subsequent overseas remittance.

Scenario:
My father has transferred his own tax‑paid personal savings to my NRO account as a domestic gift. I plan to move these funds from NRO → NRE (internal reclassification within India), and later remit the funds from NRE → USA/Canada to my overseas bank account.

Since each stage falls under a different FEMA category, I want to confirm the correct documentation and compliance requirements for all three steps.

Step 1 — Father → Child’s NRO (Domestic Gift Transfer)

1) Could you please confirm what documentation is required at this stage? Do we need any kind of documents at this stage?
2) My understanding is that a simple Gift Deed and bank transfer proof are sufficient.

3) Is there anything else required?

Step 2 — NRO → NRE (Internal Reclassification)

1) Could you please confirm what documentation is required at this stage? Do we need any kind of documents at this stage?
2) My current understanding is:
NRO → NRE Transfer Form

Form 145

Gift Deed

Account verification (cheque leaf/screenshot)

I also request clarification on the following points:

Whether a CA certificate (Form 15CB/15CA/146) is required when the source of funds is a domestic gift from a parent.

Whether TCS applies to an NRO → NRE transfer, considering that TCS is generally applicable only to outward foreign remittances under LRS.

Step 3 — NRE → USA/Canada (Outward Remittance)
For the final outward remittance, could you confirm whether the following documents are sufficient? Do we need any kind of documents at this stage?
Form A2

Purpose code

Passport

PAN

NRE bank statement

Gift Deed (for source‑of‑funds clarity)

If any additional documentation is required at this stage, please advise.

Your guidance will help ensure that I follow FEMA and Income‑tax rules correctly at each step.

Thank you,

Kapil Gupta.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

10 October 2026 Step 1: Execute a stamped Gift Deed and secure bank transfer proofs for the tax-free gift from your father. Step 2: File Forms 15CA/15CB with a CA to facilitate the NRO-to-NRE transfer; TCS does not apply to domestic NRO-to-NRE movements. Step 3: Use Form A2, Purpose Codes, NRE statements, and your supporting gift documentation to successfully complete the final overseas remittance.

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