FAQs on Repatriation of Fund, Taxability and Validity of transaction from UAE to NRE Account in India

Question by Customer -
My Dubai UAE Company has invested in India in my NRE accounts out of the income earned from overseas. Whether this transaction is valid. I am a Director in that Company and have closed all the operations in that company. So amount lying in Companies account is fully transferred to my NRE account. Please update on the taxability and validity of transferring amount from UAE Company to my NRE Account in India.

Answer to the Query
If it was investment by NRI in an Indian company and the same was also reported as FDI with bank, then repatriation of investment is possible. But yes, if the amount is out of reserves (i.e in excess of capital) then first decide the nature of transfer from company to Investor’s NRE Account. As dividend or other professional payments will be chargeable to tax. Treatment of the transaction varies from case to case. A Good Consultant can understand the matter as per your transaction and then can advise on legal ways available  for repatriation.

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