While an NRE account is fully repatriable tax free, under an NRO you can still repatriate the balance but you are required to pay taxes on the repatriated amount. In regards to taxes, an NRE account is tax-free in India but there are taxes applicable for the NRO account. The main differences between an NRE and NRO account are the funds used to open an account, taxation, and repatriability.Īn NRE account can only be opened using foreign currency, while NRO accounts can be opened with both foreign funds and Indian rupees. Repatriable, post taxes and under certain conditions Here is a quick table to compare all the differences between NRE and NRO accounts⁵: Open your free Wise account now □ Difference between NRE and NRO account Save on international transfers to your Indian accounts using Wise over bank transfers For both NRO and NRE accounts, you can open a current, savings or fixed deposit account, with specific interest rates determined by the banks. NRI accounts differ from Indian resident bank accounts as they are able to accept foreign currency deposits. NRE and NRO accounts provide NRIs with ways to send money to India- to support their families, manage properties, make investments, deposit earned income in India, and more.
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