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I am an NRI working in Singapore. I have recently opened an NRE & NRO account. I understand it's illegal for me to now hold a normal savings account in India. I have cash that is to be transferred and I prefer to keep it in India for later use.

Can I ask my family member I.e. father or brother to transfer that amount to my NRO account? Can it be categorized as gift? The amount is not a regular payment but one time of less than 50k inr. Would this be a risky thing to do?

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Can I ask my family member I.e. father or brother to transfer that amount to my NRO account?

Yes you can.

Can it be categorized as gift?

It can be. For the said amount it doesn't make sense. Gift tax is applicable only for transfers above 50 K.

The amount is not a regular payment but one time of less than 50k inr. Would this be a risky thing to do?

Pretty straight forward. Transfers from Father / brother is unlimited and there is no gift tax. Worst case even if they count this as income [which it can't be]; the tax liability in India will kick in only if the income exceeds the tax brackets.

  • Thanks . I read somewhere that transfers made to NRO should only be like interest , Rent etc Hence wanted to check once. – Pb89 Jul 26 '17 at 3:47
  • @Pb89 Generally yes. Broadly what it says is any NRO credits can be treated as income unless you establish otherwise. items that are known as incomes like interest, rent, profits from shares or sale of property etc can only be credited to NRO and not an NRE account. – Dheer Jul 26 '17 at 4:11
  • So as in my case above - its not an income. But since its not a big amount - i dont need to state the source and reason. – Pb89 Jul 26 '17 at 6:01
  • @Pb89 Yes that is correct. – Dheer Jul 26 '17 at 6:13

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