Good morning sir/ madam,
The assessee being NRI submitting his return of income regularly in India. The assessee want to repatriate the accumulated income savings to USA from his NRE account in India. What is the procedure for repatriation of the amounts on which taxes have been paid in India. Kindly guide me in this regard.
Thanks in advance
|
Particulars |
FCNR (B) Account |
NRE Account |
NRO Account |
|
Joint account of two or more NRIs |
Permitted |
Permitted |
Permitted |
|
Joint account with another person resident in India |
Not permitted |
Not permitted |
Permitted |
|
Currency in which account is denominated |
Pound Sterling/ US Dollar/Jap.Yen/Euro |
Indian Rupees |
Indian Rupees |
|
Repatriability –
|
Freely repatriable
|
Freely repatriable
|
Not repatriable (except current income like rent, dividend, pension etc. and remittances indicated under "Repatriation of NRO Funds")
|
|
Interest |
Freely repatriable |
Freely repatriable |
Freely repatriable |
|
Foreign currency risk |
Account holder is protected against changes in INR value vis-à-vis the currency in which the account is denominated. |
Account holder is exposed to the fluctuations in the value of INR. |
Account holder is exposed to the fluctuations, in the value of INR to the extent of interest amount. |
|
Type of accounts |
Term deposits only. |
Current, Savings, Recurring, Fixed Deposits. |
Current, Savings, Recurring, Fixed Deposits. |
|
Period of fixed deposits |
For terms not less than 1 year and not exceeding 3 years |
For the periods as announced by the deposit taking bank. |
For the periods as announced by the deposit taking bank. |
|
Rate of interest |
Banks are free to determine interest rates within the ceiling, if any, prescribed by the Reserve Bank
|
Banks are free to determine interest rates. |
Banks are free to determine interest rates. |
|
Rupee Loans in India against Security of the funds held in the account to : |
Permitted Permitted |
Permitted |
Permitted |
|
Foreign currency loans outside India against security of the funds held in the account to : |
Permitted |
Permitted |
Not permitted |
CAclubindia
