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Nre: inward remittance query

Dinkar Sinha (Consultant) (30 Points)

06 January 2015

I am freelance consultant based out of UK. I am of Indian origin and have a NRE account with a Bank in India. Recently I took up an assignment for a company in Singapore and now the company wants to pay me for my professional services. I would ideally want the company to transfer the money to my NRE account (as I have personal requirements in India). My questions are as follows:

1. Can an external party (whether individual or company) remit money directly to my NRE account?

2. Is there any limit to the money that can be transferred in such a way?

I understand that I would need to show income for the purpose of taxation in the UK.

Experts on NRE remittance please help.

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Raphael (Chartered Accountant) (214 Points)
Replied 08 January 2015

As per RBI guideline:

"Permissible credits to NRE account are inward remittance to India in permitted currency, proceeds of account payee cheques, demand drafts / bankers' cheques, issued against encashment of foreign currency, where the instruments issued to the NRE account holder are supported by encashment certificate issued by AD Category-I / Category-II, transfers from other NRE / FCNR accounts, sale proceeds of FDI investments, interest accruing on the funds held in such accounts, interest on Government securities/dividends on units of mutual funds purchased by debit to the NRE/FCNR(B) account of the holder, certain types of refunds, etc."

Hence to answer your question:

1. Yes an external party can remit directly to your NRE account, provided the amount is in foreign currency.

2. There are no limits for transferring money into the NRE account.

I also suggest that you refer the foreign exchange law prevailing in your country. As the income is assessable in U.K. please check whether there is any resrtiction in transfer the income proceeds directly to another country before transferrring it to U.K first.