Can I transfer money from NRO account to a resident Indian account?

[manamthoupule]

I sold my property and buyer deposited sale proceeds into my NRO account after deducting TDS. When buyer filed 27Q, income tax department came back saying he deducted less TDS. Now can I transfer the money that buyer needs to pay for TDS from my NRO account to buyer's resident Indian account ?

Please note this is transferring from NRO to resident Indian account. Just want to make sure this won't cause any issues when I try to repatriate money back to USA from NRO account.

[Spartan]

yes you can.

i was able to xfer it to multiple accounts in india from NRO.

[Be_happy]

12 hours ago, manamthoupule said:

I sold my property and buyer deposited sale proceeds into my NRO account after deducting TDS. When buyer filed 27Q, income tax department came back saying he deducted less TDS. Now can I transfer the money that buyer needs to pay for TDS from my NRO account to buyer's resident Indian account ?

Please note this is transferring from NRO to resident Indian account. Just want to make sure this won't cause any issues when I try to repatriate money back to USA from NRO account.

Yes. That’s the whole purpose of nro account. Which is making transactions in India.

 For repatriation I think you should use nre account.

[Konebhar6]

19 hours ago, manamthoupule said:

I sold my property and buyer deposited sale proceeds into my NRO account after deducting TDS. When buyer filed 27Q, income tax department came back saying he deducted less TDS. Now can I transfer the money that buyer needs to pay for TDS from my NRO account to buyer's resident Indian account ?

Please note this is transferring from NRO to resident Indian account. Just want to make sure this won't cause any issues when I try to repatriate money back to USA from NRO account.

Friend sold a property in India. Lets say he bought it for 2 lakhs long back. He sold it for 1cr.30 lakhs. All 1cr, 30 lakhs deposited into his NRO A/C. He gave the sale deed details to the tax preparer and he calculated the tax. His purchase cost is adjusted for inflation (Looks like its called Indexing) so it came around 28 lakhs. So the tax calculation came around 25% it seems (on 1 cr 2 lakhs). He showed the proof of Income tax paid to ICICI Bank and did funds transfer from his NRO to US Bank Account. 

Once he got money to USA, He gave all details to tax attorney here. Tax calculation here is different. They add (1 cr 30 lakhs - 2 lakhs) converted to $$ and add it to income here. What ever is the Income tax calculated, they deduce the tax paid in India already (25 lakhs converted to $$).  

The process looks complicated, but he did with out any hassles. Just keep documentation until everything done. 

Overall the total tax paid on profit came to around 30-35% it seems but all legal money.