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Bank accounts in India




My brother is in Canada on PR and holding valid Indian passport. He has PAN Card but no Aadhar Card in India.

He has resident saving accounts in a few banks in India.
He wishes to convert them into NRO accounts as he has interest income on deposits & other income in India.

He has been asked by the banks to fill out relevant forms and send required documents.
The tax rate on interest earned on NRO deposits is 30.9% compared to 10% on interest on Resident deposits. This is quite high as almost 1/3rd of his interest income will be gone in tax and claiming refunds from tax department later could be difficult.

He has been informed by banks that if he continues to hold the existing resident saving & Deposits accounts, they will be frozen / blocked after 31st December 2017 if Aadhar card is not linked.

Please advise the best options for him in this situation.


 
new_migrant

Junior Desi
Member since: Sep 11
Posts: 33
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Post ID: 236050 20-09-17 07:16:48
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pendse
Senior Desi
Member since: Jun 17




Posts: 118
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Quote:
Originally posted by new_migrant

My brother is in Canada on PR and holding valid Indian passport. He has PAN Card but no Aadhar Card in India.

He has resident saving accounts in a few banks in India.
He wishes to convert them into NRO accounts as he has interest income on deposits & other income in India.

He has been asked by the banks to fill out relevant forms and send required documents.
The tax rate on interest earned on NRO deposits is 30.9% compared to 10% on interest on Resident deposits. This is quite high as almost 1/3rd of his interest income will be gone in tax and claiming refunds from tax department later could be difficult.

He has been informed by banks that if he continues to hold the existing resident saving & Deposits accounts, they will be frozen / blocked after 31st December 2017 if Aadhar card is not linked.

Please advise the best options for him in this situation.



Right now convert them to NRO. Then repatriate the NRO money to Canada.

Then send the money back from Canada in CAD dollars to a NRE account. There will be No tax in the NRE account. If you want to go that route.

You will lose in exchange rate both ways - INR to CAD and back to CAD to INR.

Its NOT hard to get NRO- 30.9 % TDS interest money back from the Indian IT dept. Nowadays its all efiling and in a couple of months you get your money back via Direct Deposit. The Indian IT dept. has improved a lot in this regard.

I have NRO accounts and have had NO problems getting my TDS back. You can efile the IT return yourself or an Indian CA will do it for less than Rs. 2,000 for you.

They don't bother you anymore as in the past, since MODI has arrived. The corruption & harassment has gone down considerably.

His Indian resident accounts are basically illegal , the moment you become a foreign citizen, PR or even NRI for that matter you are supposed to convert resident accounts into NRO.


 
Post ID: 236051 20-09-17 08:04:22
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new_migrant
Junior Desi
Member since: Sep 11




Posts: 33
Location:


Thanks for the information.
However we understand that principal amount of NRO deposits cannot be repatriated abroad.
Only interest earned on NRO deposits on which tax @ 30.9% has been deducted can be repatriated subject to maximum of INR 250,000 in a financial year.
Please guide.


 
Post ID: 236093 01-10-17 18:53:10
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Full House
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Member since: Oct 12




Posts: 2281
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RBI permits to TRANSFER Funds from NRO Rupee accounts to....


I got to find out from two reliable sources that there are possibilities to withdraw monies from NRO Accounts in India and The RBI has allowed it, as TRANSFER from NRO to NRE.

I have not explored the details provided to me extensively. Also, how far the Banks will go and which banks are in the knowhow and are willing to help you accomplish the same, these are the facts that needs to get brought about.

The links are provided to you below and please do drop us a note if you were able to get it done easily. Half these guys who have never helped anyone there will pull wool over your eyes at the transaction counters.

Good Luck.


FH.
RBI permits to transfer NRO Rupee Accounts to NRE External F/C Account.

https://www.hdfcbank.com/htdocs/common/pdf/FEMA_Declaration.pdf

Article..: http://nareshco.com/blog/?p=8


---
Quote:
Originally posted by new_migrant

Thanks for the information.
However we understand that principal amount of NRO deposits cannot be repatriated abroad.
Only interest earned on NRO deposits on which tax @ 30.9% has been deducted can be repatriated subject to maximum of INR 250,000 in a financial year.
Please guide.





 
Post ID: 236096 02-10-17 17:24:51
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Full House
Senior Desi
Member since: Oct 12




Posts: 2281
Location:




How to activate a DORMANT (Inactive) Account..:
There is no uniform rule that all the banks follow. Each one has their QUIRKIES and they all want some thing different. Imagine a Bank making it MANDATORY to have an OCI/PIO card??!! Cuckoos. In a few years, they will say, you will have to land a JET in their back yard and you must have a PILOTS Licence.

Anyway be aware of a few details and see a link or two and please add to this as time progresses to get the whole pile of requirements and the funnies to go with them.

Hope this helps a few.

FH.

HDFC..: https://www.hdfcbank.com/htdocs/common/pdf/customer_updation_kyc_nri_Form.pdf

SBI..: https://www.sbi.co.in/portal/web/personal-banking/kyc-documents-individuals

ICICI..: https://www.icicibank.com/nri-banking/faq/accounts-and-deposits/opened-new-nri-account-with-icici-bank-inactive-or-dormant-accounts-faqs.page?


 
Post ID: 236097 02-10-17 17:39:37
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MITRON
Desi
Member since: Sep 17




Posts: 54
Location:


Quote:
Originally posted by new_migrant

Thanks for the information.
However we understand that principal amount of NRO deposits cannot be repatriated abroad.
Only interest earned on NRO deposits on which tax @ 30.9% has been deducted can be repatriated subject to maximum of INR 250,000 in a financial year.
Please guide.



The entire amount including the principal can be repatriated abroad.

You might have to fill up a form called 15CA and 15CB from your CA and give it to the bank. It shows you have paid tax on that amount and you have clearance from Income Tax department.

For lot of remittances from NRO you don't need 15CA & 15CB, so you can just repatriate it abroad.

NRO to NRE is also allowed under certain circumstances.


 
Post ID: 236099 03-10-17 03:31:30
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Many
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Member since: May 13




Posts: 93
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Source of Funds has to be accounted for when repatriating from NRO
-----------------------------------------------------------------
Many

 
Post ID: 236106 04-10-17 19:55:39
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GlobalIndian
Senior Desi
Member since: Apr 07




Posts: 157
Location: NB

Leave Your Monies With Your Parents
Please take my advice seriously; since you are now in the great promised land with tremendous opportunities to build your wealth ground-up, leave every dime you have in India to your folks. Let them enjoy a little bit of life in praise of their high-achieving migrant son/daughter in the great west. Frankly, it sounds pitiful you want to bring what little wealth that miserable country may have, only to squander it here on mere survival and bragging rights. On the other hand, is your life so low down here that you need some measly cash from there? I urge you to immediately make arrangements for your folks to access your NRO account and let them do a little something good for themselves, in your name. Thank you.

 
Last edited by: GlobalIndian on 05-10-17 09:26:02
Post ID: 236107 05-10-17 09:23:17
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MITRON
Desi
Member since: Sep 17




Posts: 54
Location:


Quote:
Originally posted by GlobalIndian

Please take my advice seriously; since you are now in the great promised land with tremendous opportunities to build your wealth ground-up, leave every dime you have in India to your folks. Let them enjoy a little bit of life in praise of their high-achieving migrant son/daughter in the great west. Frankly, it sounds pitiful you want to bring what little wealth that miserable country may have, only to squander it here on mere survival and bragging rights. On the other hand, is your life so low down here that you need some measly cash from there? I urge you to immediately make arrangements for your folks to access your NRO account and let them do a little something good for themselves, in your name. Thank you.



True. No point in bringing your hard earned Indian rupees into this broke country called Canada.

It should be the other way round, send money to India from Canada.

All my friends in USA send money in USD to their parents in India, so they can meet their expenses in old age.

Only in Canada, I have seen people bringing money in Rs. into Canada from India, instead of sending money back home ! What a miserable & shameful thing to do.

A so called third world country like India supporting a so called first world country like Canada.

I think Canada is a fourth world country in huge debt, masquerading as a first world country, leeching off immigrants money, sweat & equity.


 
Post ID: 236136 11-10-17 12:55:47
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new_migrant
Junior Desi
Member since: Sep 11




Posts: 33
Location:


Thanks for the advise given by members.

Can anyone guide on the exact process and procedures to be followed for remitting funds from NRO A/c in India to Canada.


 
Post ID: 236138 11-10-17 19:46:30
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Contributors:
Full House(2)  GlobalIndian(1)  Many(1)  MITRON(2)  new_migrant(3)  pendse(1)  rajcanada(1)  
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