taxability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2010
What is the diffrence between NRE Account, NRO Account and NRI Account. Further who can open above mention account

Guest

Guest (Expert)

01 June 2010 NRI Account: if you are an Indian citizen who is staying abroad for employment or carrying on business or vocation outside India or staying abroad under circumstances that indicate an intention for uncertain duration of stay abroad

NRE account is a repatriable Rupee account. It can be opened with either funds remitted form abroad or local funds which can be remitted abroad.

NRO account is a non-repatriable Rupee account and can be opened in with funds either remitted from abroad or generated in India, all bank accountsin India for NRIs/ Indians Overseas will be redesigned as NRO Accounts. Amount once transferred to NRO account will become non-repatriable.

Funds remitted from abroad or local funds, which can otherwise be remitted abroad to the account holder, can be credited to NRE Accounts. Local funds, which do not qualify for remittance outside India, are required to be credited to NRO accounts.

Funds can be freely transferred from NRE account to NRO account, but No funds can be transferred from NRO account to NRE account.

Money once credited into NRO account cannot betransferred back to NRE account.

When a resident becomes non-resident Indian their existing bank account in India become NRO Account.