Repatriation of money from NRO account

I am a registered power of attorney holder in my son’s NRO (Non-Resident Ordinary) account. Can I remit funds from his NRO account for him after completing the formalities prescribed by the Reserve Bank of India (RBI) and income tax department, like obtaining 15C, etc.? 

—Bimla 

A power of attorney grants a special right to the holder on behalf of the NRI. Via a power of attorney, an NRI can authorize a person to act on his behalf. However, a power of attorney holder does not possess unlimited rights. 

The resident Power of Attorney holder is not permitted to repatriate funds held in account to outside India other than to the non-resident individual account holder. Nor can such a person make payment by way of gift to a resident on behalf of the non-resident account holder or transfer funds from the account to another NRO account. 

Therefore, you shall be permitted to remit funds from your son’s NRO account to his own account after completing formalities as required and within the limits prescribed by RBI in this regard. 

I am a retired person, now settled in the USA with my family. I have some fixed deposits in India earning yearly interest. Can you assist in repatriation of this tax paid interest (current account funds) to my US bank account. 

-Name withheld on request

The RBI regulates transfer of money and balances held in domestic and foreign accounts and deposits held in India. 

Usually, interest on deposits held in foreign currency can be fully repatriated. However, interest on NRO accounts or other term deposits have to comply with RBI regulations. 

For this purpose, you may have to deposit proof of whether tax is payable on such balances and if yes, it has been duly deposited before transfer. 

You also may have to seek help from an expert who will assist you in the completion of necessary formalities for transfer of balances as desired by you. 

 Archit Gupta is founder and chief executive officer, at Clear.in.

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