FUND TRANSFER FROM
NRO TO NRE
NRE and FCNR accounts are tax free accounts in India. NRE is maintained in Indian currency and
FCNR is account that hold foreign currency. Any interest accruing on NRE and FCNR is tax free.
NRIs can freely repatriate tax free balance and interest held in NRE account. NRIs can transfer
money from NRO to NRE subject to ceiling limit of USD 1 million in a financial year and after
applicable taxes have been paid. All the applicable charges for transfer of money from NRE account
will be charged by bank from NRE accounts.
Proceeds from any investment made by an NRI in any Indian financial instrument can be freely
repatriated subject to the condition that funds were brought from abroad and investment was
made through NRE account. All the capital gains taxes, if any, have to be paid before repatriation.
To be able to transfer funds from NRO to NRE, NRIs have to produce all the relevant documents
along with certificate form Chartered accountant in Form 15CB and online form in Form 15CA.
Further, balance transferred in NRE account from NRO account can be freely repatriated as all
applicable taxes have already been paid on transfer of money from NRO account.