INCOME TAX20 Sept 2026
NRIs can transfer money from NRO to NRE account, but what is the annual limit? Check details here
If you are a non-resident Indian, you can move money from your NRO (non-resident ordinary) account into an NRE (non-resident external) account. NRE balances can be sent abroad fully, while NRO funds are only partly repatriable, up to $1 million each financial year, after taxes. Keep Form 145, Form 146 and source-of-funds proof ready before you transfer.
Key Statutory Highlights
- NRIs can transfer money from an NRO account to an NRE account, but cannot transfer from an ordinary savings account in India to an NRE account.
- Balances in NRE accounts can be fully repatriated, while NRO funds are only partly repatriable up to $1 million per financial year, subject to payment of taxes in some cases.
- Form 145 is an online declaration to the Income Tax Department confirming taxes were deducted or paid, and Form 146 is a Chartered Accountant certificate confirming the applicable tax was correctly calculated and paid.
Actionable Advice for Taxpayers / Founders:Before moving eligible funds from your NRO to NRE account, keep proof of the source of funds, a declaration confirming FEMA compliance, and check with your bank or CA whether Form 145 or Form 146 applies to your transfer.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: