Nro & nre account
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 July 2012
What is difference in NRO & NRE account. Which account can I use to make investment for money that I had in India before becoming NRI?
03 July 2012
1. Interest on NRE account is tax free where NRO is taxable in India: It used to be that NRE accounts paid a lower interest than NRO accounts, but recently RBI allowed banks to set up their own NRE rates, and as a result now NRE fixed deposits pay as much as a NRO fixed deposit.
The big difference is that there is no tax in India on the interest on this NRE account, so it makes much more sense to open a fixed deposit using a NRE account instead of a NRO account.
2. NRE accounts are tax free whereas NRO accounts are not: You don’t have to pay any taxes on your NRE account, but interest income on the NRO deposit is taxed in India.
For further details you can visit www.rbi.org.in
The big difference is that there is no tax in India on the interest on this NRE account, so it makes much more sense to open a fixed deposit using a NRE account instead of a NRO account.
2. NRE accounts are tax free whereas NRO accounts are not: You don’t have to pay any taxes on your NRE account, but interest income on the NRO deposit is taxed in India.
For further details you can visit www.rbi.org.in
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22 November 2013
Yes, the money which you earned in India before becoming NRI can be very well invested in India.
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