Nro & nre account

Save Share

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?

B Ravi Kumar ACMA, MBA, M Com

B Ravi Kumar ACMA, MBA, M Com (Expert)
Follow

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

Message likes : 1 times

Sudhag

Sudhag (Expert)
Follow

22 November 2013 Yes, the money which you earned in India before becoming NRI can be very well invested in India.

www.taxpertpro.com
info@taxpertpro.com

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now