Transfer of amount to nro account

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This query is : Resolved

Prof. Bajaj (Querist)

25 June 2014 Dear Sir,

If I am getting salary in USD from which I want to transfer a particular amount (say Rs. 2 Lakhs p.m.) to my NRO account in India, do I need to pay income tax on this amount in India ?

P.S : I know that the interest on this amount is taxable. I just want to know whether the principle amount i.e. Rs. 2 lakhs pm is taxable in India or not.

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 June 2014 no. the transfer wont trigger the income taxation in India on the principal amount

Message likes : 1 times

Prof. Bajaj

Prof. Bajaj (Querist)

25 June 2014 Many thanks. Much appreciated. Is there an upper limit to this transfer every year ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 June 2014 Sir,

when it comes to bringing Dollar into India, we got no limits...bring in as much as you can....

Prof. Bajaj

Prof. Bajaj (Querist)

25 June 2014 Thats great to note. Thanks again.

So I understand that whatever amount I transfer to my NRO account, I dont pay any tax in India. I only pay a tax on the interest earned on the NRO account. Is that correct ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 June 2014 yes.. but please ensure that your salary is never directly credited to your NRO account by your employer....it should always be first received in your account outside India and then transferred to the account in India.

Prof. Bajaj

Prof. Bajaj (Querist)

25 June 2014 Yes Sir. It will be credited to my local bank account here and thereafter I will be doing the transfer. Thanks once again.

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