91. NRO Account - PAN Card - Pension Income in India
Question: http://nriinformation.com/questions_four.htm - More on the same topic but with a twist, thanks in advance, if you can answer these questions! My Mom was recently widowed - she has OCI status w/Cdn citizenship. At the time of his death, my father was a Cdn citizen also with OCI status. She is the nominee on his non-NRI Savings A/C in INR and several FDs. The bulk of these inherited funds were accrued by way of my Dad's pension & interest on the FDs. She is now also entitled to receive his family pension in India. My questions on her behalf are as follows - Does she need to open an NRO A/C to receive these funds and if yes, can this NRO A/C be opened with these inherited funds itself (originating in India)? Does she need to apply for a PAN card (as an NRI) since TDS applies to interest accrued on NRO A/C? She never had a PAN card unlike my Dad. Can these funds be repatriated to Canada in any way since they are by inheritance? Is this repatriation possible with an NRO A/C on account of it being an inheritance as well as pension? R H Answer: Yes, your mother needs to open an NRO A/C and it can be opened with your mothers inherited funds. Speak to your Indian bank about converting your regular account that your mother presently has to an NRO account. Basicly the difference in NRO or an ordinary bank account in India is only that the account owners of NRO accounts reside abroad. There is no stipulation that money generated in India cannot be deposited in NRO accounts. In fact NRO accounts are used to deposit money recieved in India by NRIs. A Pan Card will be required if your mother is filling income tax in India. For example if your mother feels that her income is well below the yearly allowed tax free income and has paid TDS on bank interest, she can file a tax return to get some of the TDS back. Inherited funds can be repatriated provided they are first deposited in an NRO account. Pension and interest income on NRO accounts are repatriable. Your bank in India should be able to guide you.
NRI - OCI - PIO Guide & Information
91. NRO Account - PAN Card -
Pension Income in India
Question: http://nriinformation.com/questions_four.htm - More on the same topic but with a twist, thanks in advance, if you can answer these questions! My Mom was recently widowed - she has OCI status w/Cdn citizenship. At the time of his death, my father was a Cdn citizen also with OCI status. She is the nominee on his non-NRI Savings A/C in INR and several FDs. The bulk of these inherited funds were accrued by way of my Dad's pension & interest on the FDs. She is now also entitled to receive his family pension in India. My questions on her behalf are as follows - Does she need to open an NRO A/C to receive these funds and if yes, can this NRO A/C be opened with these inherited funds itself (originating in India)? Does she need to apply for a PAN card (as an NRI) since TDS applies to interest accrued on NRO A/C? She never had a PAN card unlike my Dad. Can these funds be repatriated to Canada in any way since they are by inheritance? Is this repatriation possible with an NRO A/C on account of it being an inheritance as well as pension? R H Answer: Yes, your mother needs to open an NRO A/C and it can be opened with your mothers inherited funds. Speak to your Indian bank about converting your regular account that your mother presently has to an NRO account. Basicly the difference in NRO or an ordinary bank account in India is only that the account owners of NRO accounts reside abroad. There is no stipulation that money generated in India cannot be deposited in NRO accounts. In fact NRO accounts are used to deposit money recieved in India by NRIs. A Pan Card will be required if your mother is filling income tax in India. For example if your mother feels that her income is well below the yearly allowed tax free income and has paid TDS on bank interest, she can file a tax return to get some of the TDS back. Inherited funds can be repatriated provided they are first deposited in an NRO account. Pension and interest income on NRO accounts are repatriable. Your bank in India should be able to guide you.
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