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TDS while transfer from NRO to NRE account

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Lila

Job

463 Points Posted on 21 December 2022

Assuming a sum of Rs. 1 Cr needs to be transferred from NRO to NRE account. These funds are from sale of property on which buyer has deducted tax @ 20%. But the tax liability on profit is more than the TDS amount of 20%.

Now can the entire 1 CR be transferred to NRE account and then while filing tax return assesse pays the balance tax.

Or He can transfer only the net sum (keeping the balance of tax ) in NRO account.

Pls suggest.

Replies (2)

Quick Summary

This discussion clarifies the process of transferring funds from an NRO to an NRE account, specifically when property sale proceeds are involved. It addresses whether the entire amount, after Tax Deducted at Source (TDS), can be transferred, or if the balance tax liability must be settled first. The consensus leans towards paying the outstanding tax and obtaining a Chartered Accountant's certificate before transferring the funds to the NRE account.