Nre/nro accounts
This query is : Resolved
Nishitbangera
(Querist)
02 August 2011
Is it mandatory for NRI's to open NRE/NRO accounts. Can an NRI transfer foreign income earned from abroad to a regular savings bank account in India.
What is the implication of taxability of said income and interest accrued on the foreign income transfered to a regular savings bank account thereon?
What is the implication of taxability of said income and interest accrued on the foreign income transfered to a regular savings bank account thereon?
CA PARAS BAFNA
(Expert)
02 August 2011
The interest of NRE A/c is exempt whereas the interest on ordinary savings account is taxable. That's why NRE a/c is a better place for parking the amount remitted as it will not attract any tax.
In regular savings account, interest will be taxable.
In regular savings account, interest will be taxable.
Nishitbangera
(Querist)
03 August 2011
Thanks Pararji! That was a crisp reply.
O.D.SHARMA
(Expert)
03 August 2011
As NRI you cannot have normal saving account & saving account to be converted NRO.That bears 30% tax.The status of resident will have to be reflected to NRI along with NRO Banking account.
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