Q.868 Get Indian bank to wire transfer funds abroad to NRI in Canada
Question: Sir, I am paying TDS for my bank account in India and I am submitting my tax returns to Canada also regularly. I would like the bank to wire transfer some amount to my bank here. What is the procedure, what are the requirements, and how much money I am allowed to bring here every year? Advanced thanks for your reply. J Ja [March 21, 2016] Answer: You don’t mention the type of bank account you have in India from which you want money sent to Canada. Funds held in NRE accounts are easily repatriable without any permission from the authorities. On the other hand funds held in NRO accounts require additional paperwork and hence it is not easy to simply request for a wire transfer from NRO bank accounts. While NRE deposits consist of deposits made in foreign currency, NRO deposits can include income from within India in Rupees. Before remittance is allowed from NRO accounts, the source of the money, evidence that taxes have been paid (Form 15 CA & Form 15 CB) on the money being sent abroad, purpose of transfer etc. come into play. [See http://nriinformation.com/articles5/transfer_money_abroad.htm] The Reserve Bank of India under the Liberalised Remittance Scheme (LRS) allows individuals to remit up to $250,000 abroad every financial year. There are also other routes to remit funds depending on the source of the funds being remitted. Up to one million US$ is the maximum allowed per financial year in most cases. Additional information on transferring funds abroad from Indian bank accounts is provided on this website in various articles. Use ‘Search Nri Information’ bar provided at the end of each page to find informative articles on various NRI issues. [Search bar not available in mobile site]Tax Residency Certificate to reduce TDS in Canada
Since you are paying TDS in India you may be able to reduce the TDS amount payable in India by about half if you provide your bank with a Tax Residency Certificate.How to get a Residency certificate in Canada
To get a certificate of residency in Canada you need to contact the Canada revenue agency office in your area. Only those who live in Canada can get certificates of residency. NRIs who have relocated to India cannot avail the benefit of lower TDS.
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accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been
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Q.868 Get Indian bank to wire
transfer funds abroad to NRI in
Canada
Question: Sir, I am paying TDS for my bank account in India and I am submitting my tax returns to Canada also regularly. I would like the bank to wire transfer some amount to my bank here. What is the procedure, what are the requirements, and how much money I am allowed to bring here every year? Advanced thanks for your reply. J Ja [March 21, 2016] Answer: You don’t mention the type of bank account you have in India from which you want money sent to Canada. Funds held in NRE accounts are easily repatriable without any permission from the authorities. On the other hand funds held in NRO accounts require additional paperwork and hence it is not easy to simply request for a wire transfer from NRO bank accounts. While NRE deposits consist of deposits made in foreign currency, NRO deposits can include income from within India in Rupees. Before remittance is allowed from NRO accounts, the source of the money, evidence that taxes have been paid (Form 15 CA & Form 15 CB) on the money being sent abroad, purpose of transfer etc. come into play. [See http://nriinformation.com/articles5/transfer_mon ey_abroad.htm] The Reserve Bank of India under the Liberalised Remittance Scheme (LRS) allows individuals to remit up to $250,000 abroad every financial year. There are also other routes to remit funds depending on the source of the funds being remitted. Up to one million US$ is the maximum allowed per financial year in most cases. Additional information on transferring funds abroad from Indian bank accounts is provided on this website in various articles. Use ‘Search Nri Information’ bar provided at the end of each page to find informative articles on various NRI issues. [Search bar not available in mobile site]Tax Residency Certificate to reduce
TDS in Canada
Since you are paying TDS in India you may be able to reduce the TDS amount payable in India by about half if you provide your bank with a Tax Residency Certificate.How to get a Residency certificate in
Canada
To get a certificate of residency in Canada you need to contact the Canada revenue agency office in your area. Only those who live in Canada can get certificates of residency. NRIs who have relocated to India cannot avail the benefit of lower TDS.
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