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I'm a US citizen. My father, who was a citizen of India, died last year. My father had CD in Banks and a property in India. The property was legally sold and all taxes in India paid. We are 4 sisters, so after dividing the total pool of inheritance money, there is a share of inheritance money that is now in my Bank account in India. This is an 'Ordinary' bank account and not a NRO or NRI account, as I have a PAN card, Aadhar card etc and use an Indian address. My elder sister has my POA and operates this bank account. I trust my sister completely. Inheritance money is less than $75,000

I would like to transfer this inheritance money from India to USA in dollars. I am aware of the procedure of filing forms 15CB, 15CA, A2 and then using NRO account to transfer the funds. However I guess this will require me to open a NRO account in India as the first step.

Question: Will it be better and easier for my sister to transfer this inheritance money from my 'ordinary' bank account into her bank account and then have my sister 'Gift' me the money under LRS OR is it advisable to go through the lengthy procedure of opening NRO account, then filling in 15CB, 15CA, getting RBI permission and using form A2 to transfer the funds. If my sister transfers the money into her bank account, will this be considered as income for her and will she need to pay taxes on it (even though the money in my account is from inheritance).

Thanks for your answers RRA

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This is an 'Ordinary' bank account and not a NRO or NRI account, as I have a PAN card, Aadhar card etc and use an Indian address

As you are NRI, you cannot hold an Ordinary Savings account in India. Please have this converted to NRO ASAP. It should be a simple paperwork.

Will it be better and easier for my sister to transfer this inheritance money from my 'ordinary' bank account into her bank account and then have my sister 'Gift' me the money under LRS OR is it advisable to go through the lengthy procedure of opening NRO account, then filling in 15CB, 15CA, getting RBI permission and using form A2 to transfer the funds. If my sister transfers the money into her bank account, will this be considered as income for her and will she need to pay taxes on it (even though the money in my account is from inheritance).

The right process would be to have your account converted to NRO, and complete the formality of 15CB, 15CA.

There is no taxes if you transfer the funds to your sister and she transfers the funds back to you. From Indian Taxes point of view, this is gift between close relatives and there is no taxation.

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protected by Community Aug 28 '18 at 10:27

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