Non-residents (NRIs/PIOs) can open: NRE (Non-Resident External) Account NRO (Non-Resident Ordinary) Account FCNR(B) (Foreign Currency Non-Resident Bank) Account
NRE: For foreign income; tax-free interest; fully repatriable. NRO: For income earned in India; interest is taxable; limited repatriability.
It's a fixed deposit in permitted foreign currency, with tax-free interest and no currency risk.
Indian citizens or PIOs residing abroad (with valid NRI status) can open NRE, NRO, and FCNR accounts.
NRE & FCNR: Jointly with another NRI/PIO only. NRO: Jointly with resident Indians or NRIs.
Yes, a resident savings account must be converted to an NRO account after acquiring NRI status.
Yes, an NRI/PIO is eligible to open an NRE or NRO savings account. However, if you are not a resident of India, you cannot open a regular resident savings account in India.
NRE: Interest earned is tax-free in India. NRO: Interest earned is taxable in India. The applicable Tax Deducted at Source (TDS) is 30% (plus applicable cess and surcharge). FCNR(B): Interest earned is tax-free in India.
NRE & FCNR: Fully and freely repatriable. NRO: Repatriation up to USD 1 million per financial year (subject to tax compliance and documentation).
Yes. All three accounts can be used for investing in real estate, mutual funds, shares, etc.
Use NRE for transferring foreign income to India. Use NRO for handling income from Indian sources. Use FCNR to maintain foreign currency deposits without exchange rate risk.
No, the interest earned on NRE accounts is exempt from tax in India. This includes savings, fixed deposits, and current accounts, provided the funds are sourced from outside India.
Yes, the interest earned on NRO accounts is taxable in India. The tax rate on interest is 30% (plus applicable cess and surcharge).Additionally, TDS is deducted at source by the bank, and you will need to file an income tax return in India if you have other taxable income.
No, the interest earned on FCNR(B) accounts is tax-free in India, and it is not subject to TDS. This applies to the interest accrued in the foreign currency denomination you chose for the deposit.
No documents are required for tax exemption on interest earned from NRE and FCNR accounts, as the interest is automatically tax-free. However, for NRO accounts ,you may need to submit Form 15G/15H to avoid TDS on interest if your total income is below the taxable threshold.
Yes, NRIs are required to file an income tax return in India if they have taxable income in India. This could include income from NRO accounts, rental income, capital gains, etc.
Form 15G: For individuals under 60 years, to ensure no TDS is deducted on interest income if their total income is below the taxable limit.| Form 15H: For senior citizens (aged 60 or above) to claim non-deduction of TDS on interest income if their total income is below the taxable limit. These forms should be submitted to the bank before interest payments are made.
Yes, if the TDS is deducted at a higher rate and your total income is below the taxable threshold, you can file an income tax return and claim a refund for the excess TDS.
