How much money can NRIs transfer from NRO to NRE account in a year?

For an Non-Resident Indian (NRI) earning or receiving money in India, a Non-Resident Ordinary (NRO) account is often where income such as rent, pension, interest or dividends gets deposited. But if you want to move this money to a Non-Resident External (NRE) account, there are rules on how much you can transfer and which tax-related requirements you need to meet.

So, how much money can an NRI transfer from an NRO account to an NRE account in a year? Here is what you need to know about the transfer limit, taxes and the documents required.

NRIs manage their expenses in India through the NRE and NRO accounts. An NRE account is meant for transferring foreign earnings to India. On the other hand, an NRO account is used to manage income earned in India. You may need to transfer your Indian income into your preferred currency for overseas investments or spending.


You cannot transfer money to an NRE account from a savings account in India. However, you can transfer money from an NRO to an NRE account. You can also transfer money from one NRE account to another.

What are the differences between the NRE and NRO accounts?

The interest income earned on NRO deposits attracts income tax deduction at source in India, whereas interest income from NRE deposits is tax-free in India, as per SBI website.

Balances held in NRE accounts can be fully repatriated abroad, whereas funds in an NRO account are partially repatriable (up to USD 1 million per financial year), subject to payment of taxes in some cases.

Overseas earnings can be deposited in an NRE account, whereas in an NRO account, earnings from overseas as well as Indian sources can be deposited.

NRO account limits

An NRO account can include income such as rent, dividends, interest, pension, and salary. You can transfer these earnings abroad without any upper limit after paying applicable taxes.

Capital Income: Includes proceeds from the sale of property, investments, or accumulated savings. Transfers of capital income are restricted to USD 1 million per financial year across all NRO accounts combined.

NRI should keep documents handy for income tax

Form 145 is an online declaration submitted to the Income Tax Department, confirming that applicable taxes have been deducted or paid.

Form 146 is a certificate issued by a Chartered Accountant, validating the nature of the remittance and certifying that the correct tax has been computed and paid.

Proof of source of funds

Declaration confirming compliance with FEMA rules.

How to fill Form 145?

Filling form 145 involves the following steps, as per the HDFC Bank website.

Step 1: Log in to the Income Tax India website, www.incometaxindiaefiling.gov.in

Step 2: Input your User ID ( PAN) and password

Step 3: After logging in, go to the option- 'E-file- Prepare and Submit Online Form (Other than ITR).'

Step 4: Select form 145.

Step 5: You will find instructions to fill out the form

Step 6: The form is in four parts- Part A, Part B, Part C, and Part D.

Step 7: Complete filling in the part that applies to you.

Step 8: Once you have filled up the form, verify and submit

Step 9: Click on the form and take a printout. Also take a printout of the acknowledgement slip.

Step 10: Sign the filled-up form and submit it to the bank in duplicate