Nre and nro account

S K RAWOOL (CA Practice ) (31 Points)

03 September 2015  

One our client has FD in NRE account and he wants to take an Bank OD against this FD and transfer that loan amount to NRO account.He wants to then use the funds of NRO account for his business pupose.What will be the nature of FD in NRE Account?Will it be NRE or NRO ? Are there any tax implications for this?