About nre & nro accounts
This query is : Resolved
13 July 2012
SIR,
WHAT IS NRE & NRO ACCOUNTS,AND TDS ON THESE ACCOUNTS SHALL BE APPLICABLE OR NOT. IF APPLICABLE THAN WHICH RATE?
WHAT IS NRE & NRO ACCOUNTS,AND TDS ON THESE ACCOUNTS SHALL BE APPLICABLE OR NOT. IF APPLICABLE THAN WHICH RATE?
CA PARAS BAFNA
(Expert)
15 July 2012
NRE = Non Residental External A/c.
.
Only NRI's can open this kind of account in which they can remit funds in foreign currency from outside India. Interest income is exempt and no TDS is deducted on interest.
.
NRO= NON RESIDENT ORDINARY A/C
.
Within 6 months or so, after becoming an NRI, the account holder has to request his banker to convert his existing Ordinary Savings bank A/c into NRO A/c. In this account his Indian Income can be deposited or other transactions in Rupee terms can be
entered into by /on behalf of the NRI.
.
Interest of NRO A/c is taxable . Applicable TDS Rate 10% of Interest.
.
.
Only NRI's can open this kind of account in which they can remit funds in foreign currency from outside India. Interest income is exempt and no TDS is deducted on interest.
.
NRO= NON RESIDENT ORDINARY A/C
.
Within 6 months or so, after becoming an NRI, the account holder has to request his banker to convert his existing Ordinary Savings bank A/c into NRO A/c. In this account his Indian Income can be deposited or other transactions in Rupee terms can be
entered into by /on behalf of the NRI.
.
Interest of NRO A/c is taxable . Applicable TDS Rate 10% of Interest.
.
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