Is RBI permission required to transfer money received by way of inheritance

Question: If an Indian Resident die and his executor in India transfer his money (3 crs) to an NRI who is grandson of deceased, whether RBI permission require for transfer of money from deceased or executor account to NRI (USA) in his NRO account in India. Deceased has made will and WILL is probated in Court.?

Answer(s)

Raju Kanumuri: Yes, an NRI/PIO can receive a gift from a resident relative. However, the amount cannot exceed the limit prescribed under LRS, i.e., $250,000 per financial year

The account can be credited with inward remittances from outside India, legitimate dues in India and rupee gift/loan made by a resident to an NRI/PIO relative subject to the limit prescribed under LRS. Only current income such as rent, pension, interest, etc. can be remitted from an NRO account outside India. Apart from current income, balances in the NRO account may be repatriated abroad or to an NRE account only up to $1 million in a financial year (April to March). Repatriation of an amount in excess of $1 million may be permitted by RBI under the approval route in exceptional circumstances.

All remittances made outside India are required to be made a net of applicable taxes. While remitting funds overseas, a Form A2, a Chartered Accountant’s certificate in Form 15CB and a self-declaration in Form 15CA are required to be furnished to the bank, confirming that applicable taxes have been deducted and deposited into the government treasury.

The bankers remitting the funds from NRO/NRE account may call for additional documents to substantiate that the funds being remitted from India are from genuine sources and adequate taxes have been paid.

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