Nri banking question

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  1. #1

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    Nri banking question

    Hi everybody. I have a Nre and a fcnre account in India. Can a company in India transfer funds to any of my above mentioned accounts?. Is it legal to do so? Will appreciate any answers to these questions . Thank you a lot.


  2. #2

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    Indian companies can only transfer to your NRO Ac.
    NRE & FCNRE I believe can be funded only from foreign currencies.

    Quote Originally Posted by spartacus:
    Hi everybody. I have a Nre and a fcnre account in India. Can a company in India transfer funds to any of my above mentioned accounts?. Is it legal to do so? Will appreciate any answers to these questions . Thank you a lot.

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    Thanks for your reply oldtimer!
    Just to clarify, you mean NRE and FCNRE accounts only accept foreign currencies and they should come from abroad(outside India)?
    The thing is i want to avoid paying tax on the funds and i understand the funds in a NRO Ac are taxable.
    Is there anyway to get the funds from an Indian Company(in India)without having to pay tax?
    Can i ask the company to transfer to my FCNRE Ac? As i prefer the funds in USD to avoid losses in currency exchange if later i want to transfer them to an account outside India.
    Hope i am not asking too many questions..(I am very inexperienced when it comes to this matters). Any insight i can get will be much appreciated. Thanks a lot!


  4. #4

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    Any income earned in India is subject to tax. If you are providing a service to an Indian company, it may be best to request them, to send the money to your overseas account.
    Indian rupee funds can not be deposited in NRE or FCNRE ac,


  5. #5

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    Thanks oldtimer for your reply!

    I had to get back to this thread i
    started and ask more questions. I will be more clear this time.

    I am an Nri working in a export company in Hk. My Company owes me around 60,000 USD in wages. They want to pay me in India as the bussiness is not doing well and they are short of funds in Hk.(Oldtimer i was referring to income earned in HK. I understand any income earned in India is taxable)

    They said the funds will come from a company in India.  I have agreed to this arrangement as they didn't give me any other choice (Oldtimer i tried convincing them to transfer to my HK account but they refused and i want to avoid getting into disputes with them that is why i had to get back to this thread)

    Now they are waiting for me to give them an indian bank A/C number in order to make the transfer. Here is where i need help.

    Currently i have an Nre/Nro account In India(HDFC bank).

    My question is as follow:

    1)Can a company (Is it legal?) based in India transfer funds to a NRI account?
    ****I want to know If it is posible and legal for them (my Hk company) to do so. I dont know if they have a registered company in India or will they be using somebody elses company to do so(maybe a friend)
    They just told me not to worry and promised me i will get my money

    2) If the answer to the above question is yes then can the Indian company transfer the funds in USD or only in INR?
    ****They didnt say what kind of company they will be using to make the transfer to my NRE account. I assume it is a export company as they said they will do the transfer in USD (but i am not sure)

    3) What kind of account should i open in India if i want to keep the funds in USD as my understanding is that Nre accounts only accept external funds(from outside of India) and in foreing currency which is then converted into INR and deposited to the account.
    ****I need t give them an account no in India so they can make the transfer but dont know what kind of account i should open. I want to avoid getting into trouble with the income tax dept in India and dont want to pay taxes as it is not income earned in India

    I will appreciate any advice i can get on this forum. Thank you.


  6. #6

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    Quote Originally Posted by spartacus:
    Thanks oldtimer for your reply!

    I had to get back to this thread i
    started and ask more questions. I will be more clear this time.

    I am an Nri working in a export company in Hk. My Company owes me around 60,000 USD in wages. They want to pay me in India as the bussiness is not doing well and they are short of funds in Hk.(Oldtimer i was referring to income earned in HK. I understand any income earned in India is taxable)

    They said the funds will come from a company in India.  I have agreed to this arrangement as they didn't give me any other choice (Oldtimer i tried convincing them to transfer to my HK account but they refused and i want to avoid getting into disputes with them that is why i had to get back to this thread)

    Now they are waiting for me to give them an indian bank A/C number in order to make the transfer. Here is where i need help.

    Currently i have an Nre/Nro account In India(HDFC bank).

    My question is as follow:

    1)Can a company (Is it legal?) based in India transfer funds to a NRI account?
    ****I want to know If it is posible and legal for them (my Hk company) to do so. I dont know if they have a registered company in India or will they be using somebody elses company to do so(maybe a friend)
    They just told me not to worry and promised me i will get my money

    2) If the answer to the above question is yes then can the Indian company transfer the funds in USD or only in INR?
    ****They didnt say what kind of company they will be using to make the transfer to my NRE account. I assume it is a export company as they said they will do the transfer in USD (but i am not sure)

    3) What kind of account should i open in India if i want to keep the funds in USD as my understanding is that Nre accounts only accept external funds(from outside of India) and in foreing currency which is then converted into INR and deposited to the account.
    ****I need t give them an account no in India so they can make the transfer but dont know what kind of account i should open. I want to avoid getting into trouble with the income tax dept in India and dont want to pay taxes as it is not income earned in India

    I will appreciate any advice i can get on this forum. Thank you.
    If they can deposit funds in NRE account then, the amount will not attract tax in India.
    In my experience, Indian Banks, will not accept deposits from a local rupee account. However if the funds are transferred from another NRE account, they may accept the deposit.
    Since you have no choice, I suggest you accept their proposal. If you have to pay tax , it will be about 25% .

  7. #7

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    Quote Originally Posted by spartacus:
    Thanks oldtimer for your reply!

    I had to get back to this thread i
    started and ask more questions. I will be more clear this time.

    I am an Nri working in a export company in Hk. My Company owes me around 60,000 USD in wages. They want to pay me in India as the bussiness is not doing well and they are short of funds in Hk.(Oldtimer i was referring to income earned in HK. I understand any income earned in India is taxable)

    They said the funds will come from a company in India.  I have agreed to this arrangement as they didn't give me any other choice (Oldtimer i tried convincing them to transfer to my HK account but they refused and i want to avoid getting into disputes with them that is why i had to get back to this thread)

    Now they are waiting for me to give them an indian bank A/C number in order to make the transfer. Here is where i need help.

    Currently i have an Nre/Nro account In India(HDFC bank).

    My question is as follow:

    1)Can a company (Is it legal?) based in India transfer funds to a NRI account?
    ****I want to know If it is posible and legal for them (my Hk company) to do so. I dont know if they have a registered company in India or will they be using somebody elses company to do so(maybe a friend)
    They just told me not to worry and promised me i will get my money

    2) If the answer to the above question is yes then can the Indian company transfer the funds in USD or only in INR?
    ****They didnt say what kind of company they will be using to make the transfer to my NRE account. I assume it is a export company as they said they will do the transfer in USD (but i am not sure)

    3) What kind of account should i open in India if i want to keep the funds in USD as my understanding is that Nre accounts only accept external funds(from outside of India) and in foreing currency which is then converted into INR and deposited to the account.
    ****I need t give them an account no in India so they can make the transfer but dont know what kind of account i should open. I want to avoid getting into trouble with the income tax dept in India and dont want to pay taxes as it is not income earned in India

    I will appreciate any advice i can get on this forum. Thank you.
    If they can deposit funds in NRE account then, the amount will not attract tax in India.
    In my experience, Indian Banks, will not accept deposits from a local rupee account. However if the funds are transferred from another NRE account, they may accept the deposit.
    Since you have no choice, I suggest you accept their proposal. If you have to pay tax , it will be about 25% .

  8. #8

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    Hi guys,

    And the story continues.....

    My company in Hk has informed me that they will not be making the transfer to my NRE account locally in India as they feel it is an hassle to do so..(Thanks God!)

    Instead, they will be transfering the funds to my A/C in India from overseas but not necessarily from HK, they say they will decide later.
    (Maybe they have some offshore account somewhere with black money... Panama??


  9. #9

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    Hi guys,

    And the story continues.....

    My company in Hk has informed me that they will not be making the transfer to my NRE account locally in India as they feel it is an hassle to do so..(Thanks God!)

    Instead, they will be transfering the funds to my A/C in India from overseas but not necessarily from HK, they say they will decide later.
    (Maybe they have some offshore account somewhere with black money... Panama??


  10. #10

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    Hi guys, my previous post is incomplete.Had some technical problem,which i hope wont happen again. So re-posting again.
    ----------------------------
    Hi guys,

    And the story continues.....

    My company in Hk has informed me that they will not be making the transfer to my NRE account locally in India as they feel it is an hassle to do so..(Thanks God!)

    Instead, they will be transfering the funds to my A/C in India from overseas but not necessarily from HK, they say they will decide later.
    (Maybe they have some offshore account somewhere with black money... Panama??