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Too late for NRE account?   NrI   08/07/2017 09:00 PM  
Hi,

i am on H1B visa, working in USA for 3 yrs.

Recently came to know, need to have a NRE account for non-taxable money transfer.

If I apply now for NRE a/c, do i need to pay penalty for all that i have transferred via Xoom, till now?

If not, is NRE a/c really required?



[Reply]
Re: Too late for NRE account?   E   08/07/2017 11:54 PM  
Its not too late.. you can open now and who do you think will ask you for fine?

Ideally you will need to convert any of your existing resident savings account to NRO account so that tax on interest earned on income is taxed at about 30.9% going forward.. for past, check how you filed your income tax returns, if you haven't filed for past 3 years, you can file now or you may need to amend.. talk to your CA or person whoever is filling your returns.. ideally, ignore what happened in past and correct from now.. don't keep any resident savings account, either convert to NRO or close them.. If you have any income in India or anybody needs to give you money in India, you will need NRO account.. NRE account is tax free but you can only deposit foreign currency and not INR..

[Reply]
Re: Re: Too late for NRE account?   NrI   08/08/2017 03:16 PM  
Thank you.....

It helped

[Reply]
Re: Re: Re: Too late for NRE account?   suresh   08/09/2017 09:54 AM  
Just explaining little more
-You can ignore what happened till now, that is not an issue
-Open NRE account, which means you can transfer from USA dollars to India NRE account, from indian account you can transfer to any other accounts
-NRE accounts- it is not possible to deposit money in Indian currency or some one cant transfer to you
-if you have house rent or many income in India and you want that to here which I dont think at this stage, as you are three years here . In that circumstance, you need NRO account.
-Use savings account in India for small amount transfers, like transfer $1100 from xoom and use that for recharge, rent or small purchase in India, that is not an issue
-Also when you open NRE account and you do FD, the interest you get there is non taxable , because you already paying tax here. In that case global income tax will come into place, which means you have to provide that details here while filing taxes in USA. so that they include that interest you gained also as income. But at this stage this reporting global income is also not needed. You need to do if you are earning so much and you have so much FDs

[Reply]
Re: Re: Re: Re: Too late for NRE account?   NrI   08/11/2017 09:56 PM  
Thank you suresh

[Reply]
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