a NRI wants to tansfer an amount from his NRO Account to his NRE Account.
Is TDS applicale? Is so, at what rate?
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Quick Summary
This discussion clarifies the tax implications of transferring funds from a Non-Resident Ordinary (NRO) account to a Non-Resident External (NRE) account for NRIs. While the transfer of funds itself isn't subject to TDS, any income earned within the NRO account, such as interest or proceeds from property sales, is taxable as per your applicable slab rate. If this income has already been assessed for tax, it will not be taxed again upon transfer to the NRE account. You will need to submit Form 15CA and Form 15CB, the latter requiring a Chartered Accountant's certification, to declare the source of funds.
My question is is amount transferred from a NRO tp NRE Account of the same invidual suject to tax. In other words, NRO is built up by his taxable income in India.Therefore, is any amount transferred from his NRO account subject to further tax? If so. what is the rate of TDS?
If any tax liability arises over the amount that you wish to transfer, only that need to be taxed. It is to be taxed as per slab rate applicable to you. E. G. Interest income of the NRO account. Or any credits of property sale etc...
Income Credited to the NRO Account is taxable. Now, if a portion of the balance in the RO Account is tansferred to his NRE Accout, is it taxable? And if so, what is the TDS rate?