Q.835 Repatriate interest money

from India to US . . .

Question: Hi, I have money in bank accounts in India, in various FD’s and mutual funds. What is the best method to repatriate the interests earned from these accounts to US? Thanks and regards, Avinash Singh [January 8, 2016] Answer: The easiest way to repatriate funds from India to the United States is to transfer funds abroad through your NRE account. Current income such as interest on deposits, dividend earned from shares, rental income etc. if deposited in an NRE account makes repatriation easy. RBI allows current income to be repatriated freely as long as applicable taxes have been paid. Once funds are deposited in NRE account, the account holder need not worry about TDS etc. as there are no taxes on interest income that accrues in NRE accounts. NRE account holder’s can even use on-line facilities provided by many banks such as on-line banking, ATM or International credit or debit cards to access their NRE account funds, even from abroad. Kindly note that some funds received from the sale of property by NRIs must first be deposited to NRO account, before repatriation under the RBI one million US$ per financial year rule.