Money transfer rules from NRO to NRE account

Non-Resident Indians (NRIs) often receive income in India, which is deposited into a Non-Resident Ordinary (NRO) account. However, there are rules governing the transfer of these funds to a Non-Resident External (NRE) account. NRIs can move money from an NRO account to an NRE account, but there are limits and tax considerations to keep in mind.

The transfer limit from an NRO to an NRE account is unlimited after the applicable taxes have been paid. NRIs are required to keep documents handy for income tax, including Form 145, which is an online declaration submitted to the Income Tax Department confirming that taxes have been deducted or paid. Form 146 is also necessary, a certificate issued by a Chartered Accountant validating the remittance's nature and confirming the correct tax computation and payment.

To fill out Form 145, NRIs must log in to the Income Tax India website, input their User ID (PAN) and password, navigate to the E-file- Prepare and Submit Online Form (Other than ITR) option, select Form 145, and complete filling in the parts that apply to their situation. After verifying and submitting the form, NRIs should take a printout of the completed form and the acknowledgement slip, sign the filled-out form, and submit it to the bank in duplicate.