Repatriation of income in nre account

Others 684 views 2 replies

Hemali Shanghvi

Owner

136 Points Posted on 24 August 2011

Hi,

My client is an NRI, but has now settled in India for the past two years. She has started her small firm serving both Indian and USA clients. She has not opened any current account in her firms names yet. She has already worked on some projects. she is expected to receive some funds from her USA client. Can she receive these funds in her NRE account? Should she open any other type of bank account for her USA clients?

Thanks

Hemali

Replies (2)

CS Bijoy

Expert

6394 Points Posted on 24 August 2011

She is receiving the fund on behalf of the service provided by the firm so it will be better to open a current account to receive the fund .

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Posted on 08 September 2011

Originally posted by : Hemali Shanghvi
	Hi, My client is an NRI, but has now settled in India for the past two years. She has started her small firm serving both Indian and USA clients. She has not opened any current account in her firms names yet. She has already worked on some projects. she is expected to receive some funds from her USA client. Can she receive these funds in her NRE account? Should she open any other type of bank account for her USA clients? Thanks Hemali

As per FEMA, since NRI has come back and sttled in India for 2 years, then she becomes a resident in India as per FEMA.

The ex-NRI lady should now definitely open a current or saving account depending on her requirement in India and should not receive payment in the NRE account.

Anuj

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