From Transfer To Global Account – A Complete Guide For NRIs and Residents To Rem

1. From Transfer To Global Account – A Complete Guide For NRIs and Residents To Remit Funds From India The Right Way For Non-Resident Indians (NRIs), handling cross-border financial transactions between India and their country of residence often brings up intricate issues regarding legality, tax compliance, and regulatory responsibilities. The particularly confusing aspect for NRIs and their families is the procedure for remitting funds obtained through gifts, inheritance, or maturity proceeds from India to overseas. This guide clarifies how to legally remit gifted or inherited funds, and how resident relatives can utilize the Liberalized Remittance Scheme (LRS) under the new TCS regime that takes effect on April 1, 2025. Understanding the basics Remittance typically refers to the process of sending money from India to abroad. For NRIs, this may include transferring gifted money, insurance maturity proceeds, or inherited assets internationally. Each of these transactions is subject to specific regulations under FEMA, RBI guidelines, and Indian tax laws. Given the legal implications, necessary documentation, and possible tax responsibilities, NRIs must adhere to the proper procedures to ensure complete compliance and avoid penalties or delays. For instance, if an NRI Mr. A transfers $100,000 from his overseas account to his NRE bank account in India, this is classified as an inward remittance. Conversely, if another NRI Mr. B, receives ₹50,00,000 as a gift from his father in India and sends it to his Austrian bank account, this is an outward remittance. These scenarios illustrate how remittance can take various forms and emphasize the importance of understanding the regulatory framework. What can be remitted: Gifts, inheritance & maturity proceeds

2. NRIs are allowed to send only specific types of funds out of India, referred to under FEMA as “remittance of asset”. This encompasses:      Maturity amounts from insurance policies Provident fund balances or superannuation benefits Proceeds from the sale of assets or shares owned in India Gifts from relatives residing in India Inheritance received or sale of inherited assets – both movable and immovable from parents or other family members Note: Although these funds are valid for remittance, they must be sent following established limits, with appropriate documentation, tax clearance, and through authorized banking channels. How to remit gifted funds from India the right way NRIs can remit funds with the help of NRE and NRO accounts. Remittance procedure from an NRE account NRE accounts allow easy, tax-free remittances abroad with no limits or RBI approval, requiring only Form A2 and a simple request to the bank.  Simple documentation: There is no need for Form 15CA or 15CB. The NRI simply needs to fill out and submit Form A2. Bank request: A basic remittance request letter or application is required, instructing the bank to transfer the specified amount abroad. Execution: Upon receipt of the request and Form A2, the bank processes the transfer. No RBI approval is required, and there’s no monetary ceiling.   Remittance procedure from an NRO account NRO accounts allow unlimited remittance of current income abroad with tax compliance and CA-certified Forms 15CA/15CB. Capital remittances are capped at USD 1 million per financial year, subject to documentation and taxes, without RBI approval.  Obtain Form 15CB: Issued by a Chartered Accountant after verifying the remittance nature and tax applicability File Form 15CA: Electronically submitted and verified on the Income Tax portal Bank request: The documentation required include Form 15CA, Form 15CB, Form A2, and a request letter and source-related documents. Execution: The bank reviews the documentation, processes the remittance, and reports it to RBI. These steps ensure lawful, tax-compliant international fund transfers.    The role of banks in NRI remittance execution Authorized Dealer banks are responsible for processing NRI remittances as per RBI and Income Tax rules. They verify documents, ensure FEMA compliance, and report transactions to regulatory authorities. Before executing the transfer, banks check the nature and source of funds, confirm tax compliance, and validate required forms like 15CA and 15CB. Key points:   Banks verify Forms 15CA & 15CB, tax payment, and purpose of remittance. Documentation varies based on source – e.g., property sale deeds, gift deed, will, etc.

3.    Remittance is allowed only after full compliance with RBI and tax rules. Exchange rate at the time of transfer affects the final amount received. A good relationship with your bank’s NRI manager can help ease and expedite the process. How Indian residents can send gifts and money to NRIs Resident Indians can financially support NRI relatives under the Liberalized Remittance Scheme (LRS), which allows up to USD 250,000 per financial year for various permissible transactions. This provision can also be used to send money for personal usage, such as during travel abroad. Permitted uses under LRS:         Personal or business travel (except to Nepal/Bhutan) Gifting or donations abroad Supporting close relatives overseas Medical treatment or check-ups abroad Education and living expenses abroad Employment/emigration Investments outside India (including GIFT IFSC) Other current/capital account transactions allowed under FEMA Not permitted under LRS:      Buying lottery tickets or foreign exchange trading Margin calls on overseas exchanges Remittances to FATF “non-cooperative” countries To flagged individuals/entities posing terrorism risks Gifts in foreign currency from one resident to another TCS on LRS Tax Collected at Source (TCS) on foreign exchange transactions under the Liberalized Remittance Scheme (LRS) was established by the Finance Act, 2020 and updated under the Finance Act, 2025 to facilitate remittances for educational and medical purposes. Key highlights (from April 1, 2025):   No TCS is applicable to remittances for education that are funded through an education loan. No TCS is charged on remittances up to ₹10 lakh per financial year for education (using personal funds) and medical treatment. oA 5% TCS is imposed on amounts exceeding ₹10 lakh for these remittances. oIf the remitter fails to provide a valid or active PAN, the TCS rises to 10% for these remittances. For all other reasons (such as gifts, investments, personal travel), there is no TCS up to ₹10 lakh; however, a 20% TCS is applicable on the excess amount. Using an overseas credit card while traveling is not included in the LRS and is exempt from TCS.   These regulations are particularly significant for resident Indians sending money for investments or to assist NRI close relatives overseas. How ExpertNRI helps you stay compliant At ExpertNRI, we provide specialized NRI remittance and repatriation services in India, ensuring that every transfer – from gifts and maturity proceeds to sale funds – is conducted with full legal and tax

4. compliance. Our knowledgeable team assists you with precise documentation in accordance with FEMA and RBI regulations, CA certification, and income tax compliance, while also helping you obtain favourable exchange rates. With extensive experience gained from supporting thousands of NRIs worldwide, we offer personalized, transparent, and ethical consulting to help you achieve your financial objectives without any hidden surprises. Looking for expert assistance in transferring funds abroad? Reach out to the NRI specialists at ExpertNRI today! Resource: From Transfer To Global Account – A Complete Guide For NRIs and Residents To Remit Funds From India The Right Way