Transferring nre funds between nri spouse(s)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 November 2011
Dear Expert(s),
I would be highly obliged if you could kindly help me answering the following questions.
Please accept my sincere thanks.
Regards,
Background information: I am working in UAE for the last 5 years, and lives with my wife on UAE residence visa, she is housewife and has no income in India or UAE, we both have individual NRE and NRO accounts, and we both own PAN.
I own a commercial property in India (bought through NRE funds), which is generating rental income of around INR 50,000/- a month after TDS of (30% + 3%). For the last two years I am filing ITR regularly as per ITA, for claiming returns, and I have no other income in India except this.
I want to take advantage of higher NRO deposit interest rates, whilst saving Tax, for which I am planning to transfer NRE funds to my wife's NRE account, and she will deposit through her NRO account, and obtain TDS and Tax relief under Indo UAE DTAA.
Q1. Can I transfer funds from my NRE account to my wife's NRE account? Will this be a legitimate transaction according to IT Act and other Indian laws? Up to what amount can I transfer, are there any restrictions?
Q2. Can my wife seek Tax and TDS relief under Indo UAE DTAA for NRO interest income? Will there be any additional Taxes for NRO interest income? Does educational cess be levied on DTAA based TDS/Tax? Is it mandatory to file ITR if she is generating only interest income in India?
Q3. Will she be able to deposit the interest and principal (NRO deposit maturity) proceeds to her NRE account? Will there be any future tax implication due this arrangement that we have to be aware of?
Q4. Alternatively, can I place a deposit through my NRO account and seek for TDS/Tax relief under Indo UAE DTAA, and not disclose interest income when filing rental income ITR? Can I seek TDS and Tax relief for my rental income under Indo UAE DTAA??
I would be highly obliged if you could kindly help me answering the following questions.
Please accept my sincere thanks.
Regards,
Background information: I am working in UAE for the last 5 years, and lives with my wife on UAE residence visa, she is housewife and has no income in India or UAE, we both have individual NRE and NRO accounts, and we both own PAN.
I own a commercial property in India (bought through NRE funds), which is generating rental income of around INR 50,000/- a month after TDS of (30% + 3%). For the last two years I am filing ITR regularly as per ITA, for claiming returns, and I have no other income in India except this.
I want to take advantage of higher NRO deposit interest rates, whilst saving Tax, for which I am planning to transfer NRE funds to my wife's NRE account, and she will deposit through her NRO account, and obtain TDS and Tax relief under Indo UAE DTAA.
Q1. Can I transfer funds from my NRE account to my wife's NRE account? Will this be a legitimate transaction according to IT Act and other Indian laws? Up to what amount can I transfer, are there any restrictions?
Q2. Can my wife seek Tax and TDS relief under Indo UAE DTAA for NRO interest income? Will there be any additional Taxes for NRO interest income? Does educational cess be levied on DTAA based TDS/Tax? Is it mandatory to file ITR if she is generating only interest income in India?
Q3. Will she be able to deposit the interest and principal (NRO deposit maturity) proceeds to her NRE account? Will there be any future tax implication due this arrangement that we have to be aware of?
Q4. Alternatively, can I place a deposit through my NRO account and seek for TDS/Tax relief under Indo UAE DTAA, and not disclose interest income when filing rental income ITR? Can I seek TDS and Tax relief for my rental income under Indo UAE DTAA??
21 November 2011
1. Yes, but subject to certain conditions.
2.Yes,
3. needs to be checked.
4. Will be risky.
Anuj
+91-9810106211
femaquery@gmail.com
2.Yes,
3. needs to be checked.
4. Will be risky.
Anuj
+91-9810106211
femaquery@gmail.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Gift Received from nonblood relative
- Section 50-fixed asset-->building ceases to exist
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
