Legally transferring funds from India to UK


#1 Jun 24th, 2018, 05:42
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  • andsouza is offline
#1
Hi Friends,

I am an Indian citizen settled in UK for sometime now, I wanted to know the process of transferring funds from India to UK , its known as "outward Remittance".

I have a Saving account in an Indian bank and have some funds lying in there which i need them to be transferred here in UK.

I need to know the following:
1.) The process of transferring
2.) How much is the restriction
3.) How long will it take
4.) Can i do it from UK or do we need i need to visit India
5.)Which all charges will the bank apply.
6.) Who will provide a good exchange rate and how safe they are.

Thanks
Andsouza
#2 Jun 24th, 2018, 09:39
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  • JOHNLORD is offline
#2
Quote:
Originally Posted by andsouza View Post Hi Friends,

I am an Indian citizen settled in UK for sometime now, I wanted to know the process of transferring funds from India to UK , its known as "outward Remittance".

I have a Saving account in an Indian bank and have some funds lying in there which i need them to be transferred here in UK.

I need to know the following:
1.) The process of transferring
2.) How much is the restriction
3.) How long will it take
4.) Can i do it from UK or do we need i need to visit India
5.)Which all charges will the bank apply.
6.) Who will provide a good exchange rate and how safe they are.

Thanks
Andsouza

Before you do this, incase you get asked where the money came from, have you declared your Indian funds/income(interest etc), to the Inland Revenue ( I think thats what it is still called).

A friend of mine did this a couple of decades ago and he got fined for not declaring his foreign assets.

Just a thought. It might be simpler if you gift the money to a close relative and they gift it back to you in the UK.
Lord, Grant me the Serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to hide the bodies of those people I had to kill because they pissed me off.
#3 Jun 24th, 2018, 12:50
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  • edwardseco is offline
#3
How many of them can you trust.?
#4 Jun 24th, 2018, 14:27
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#4
I have only done it from u.k to India and that was several years ago. I just paid into American express here and the recipient picked it up in Delhi. Afterwards i found there were cheaper ways of doing it. The amount was 5 lahk.
#5 Jun 24th, 2018, 14:39
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  • Golghar is offline
#5
There is quite a bit of paperwork involved. You should get in touch with a chartered accountant to steer you through the whole procedure.
Here is a link with relevant details: https://cleartax.in/s/form-15ca-15cb-under-rule-37bb

First you will have to obtain a PAN-card. It can be done from abroad. I got one myself in 2010. Then you will have to open an NRE account. You can do this through a foreign branch of an Indian bank. I opened one at SBI Patna through the SBI branch at Frankfurt. Once all the 15CA or CB is done you can transfer the funds from your existing account (it may have to be converted to an NRO account first) to the NRE account. From an NRE account you can transfer funds abroad.
#6 Jun 24th, 2018, 15:20
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  • OldandRambling is offline
#6
Quote:
Originally Posted by Golghar View Post There is quite a bit of paperwork involved. You should get in touch with a chartered accountant to steer you through the whole procedure.
Here is a link with relevant details: https://cleartax.in/s/form-15ca-15cb-under-rule-37bb

First you will have to obtain a PAN-card. It can be done from abroad. I got one myself in 2010. Then you will have to open an NRE account. You can do this through a foreign branch of an Indian bank. I opened one at SBI Patna through the SBI branch at Frankfurt. Once all the 15CA or CB is done you can transfer the funds from your existing account (it may have to be converted to an NRO account first) to the NRE account. From an NRE account you can transfer funds abroad.
Gosh, and I thought buying an Indian train ticket was complicated!

Ed.
#7 Jun 24th, 2018, 16:33
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  • ukdoctor is offline
#7
If the funds are in my NRE account , I can do it in seconds.

I have HSBC UK and HSBC India accounts which are linked.

I can transfer the funds back and forth without any limits and it is nearly instant.

For funds in NRO , you need to get a declaration that they are post tax / legal funds and then you can transfer. This may need a Chartered accountant..Part of this can be done online ( ICICI).

As Golghar said , if your account is still a resident account it will have to be converted into a non resident account first.

It also depends on what sum of money you are talking about.

If it is a few thousand pounds then you can always convert it to GBP and bring it back with you on your next trip to India .

You do not have to declare cash below 10000 while entering the UK and for India it is $5000.
#8 Dec 19th, 2018, 08:52
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  • Bandicoot is offline
#8
I'm coming late to this thread. OP hasn't indicated what kind of account his funds are in currently.

If it's an NRE account there are practically no limits but I doubt the OP would be asking the question in that case.

If it's an NRO account and the account-holder is an NRI or PIO/OCI (OP seems to be an NRI), the limit is $1,000,000 per year, with the forms 15-CA and 15-CB properly filed (they are filed online at the income tax department's web site, and copies need to be given to the bank). Yes, a PAN card will be needed. You're supposed to only transfer funds that you got through certain permitted sources as a non-resident in India (rent, salary, business income, capital gains, etc.) - the accountant certifies to that in the 15-CB. For funds from other sources the limit is $500,000.

If it's a resident account the limit is lower, something like $250,000 for permitted purposes (and forms 15-CA / 15-CB and a PAN card are needed). Strictly speaking the OP would need to be an Indian resident for this but in practice this is not enforced; but it may be best to correct the designation of the account to an NRO account in case the OP does not have some proof of Indian residency.

You may need to pay various taxes due on the amount first before the remittance.

The bank will charge something like ₹250 as currency conversion charges, and may have some fees like ₹1,000 or so for the outward remittance service itself, but more significantly you pay GST on the remittance - it's a tiered system, 1% up to ₹1,00,000, 0.5% beyond that to ₹10,00,000, and ₹5,000 + 0.1% beyond that up to a maximum of something like ₹100,000. Also, the bank will go by published RBI currency conversion rates, and you don't get to complain if the rate is unfavorable to you on the day (at the time) when your remittance is processed. At least that's how it is at the public sector banks. I don't know if the private sector banks have any flexibility in using other exchange rates.

Whether this needs to be done in India - it would be easiest to do it in India. Filing the forms 15-CA and 15-CB can be done online. However, if you are not personally handing in the paperwork (including the bank's own application forms, FEMA declaration, etc.), I'm not sure how easy it is - your accountant or other representative might be able to do it, but the bank may ask for additional documents (power of attorney would definitely be sufficient, but failing that perhaps a signed and notarized statement from you that the application is indeed being filed by you). I'm not sure.

As to how long it will take, filing the forms with your accountant should not take more than an hour or so. Submitting the paperwork to the bank doesn't take that much time. The bank may process the remittance the same day, or give you some excuse ("technical problems") and dilly-dally for a couple of days. Once submitted through the SWIFT network, funds will usually show up in the destination bank within 24 hours, although sometimes it can take 2-3 days.

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