NRO account re-designation permitted for departing foreign nationals to collect pending dues, subject to tax clearance and repatriation rules. AD Category I banks may permit departing foreign nationals to re-designate resident accounts as NRO accounts to receive pending bonafide dues, provided the bank obtains full details of expected dues, verifies that credits are bonafide, ensures immediate repatriation after satisfying itself about payment of applicable taxes, enforces that debits are only for repatriation to the holder's overseas account, permits no other inflows, applies internal controls to monitor transactions, observes the per financial year repatriation limit, and closes the account after all dues are repatriated.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
NRO account re-designation permitted for departing foreign nationals to collect pending dues, subject to tax clearance and repatriation rules.
AD Category I banks may permit departing foreign nationals to re-designate resident accounts as NRO accounts to receive pending bonafide dues, provided the bank obtains full details of expected dues, verifies that credits are bonafide, ensures immediate repatriation after satisfying itself about payment of applicable taxes, enforces that debits are only for repatriation to the holder's overseas account, permits no other inflows, applies internal controls to monitor transactions, observes the per financial year repatriation limit, and closes the account after all dues are repatriated.
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