80TTA For NRI

Originally posted by : Samantha J
	NO. As in most cases foreign currency is held in NRO

NRO is specifically for rupee holdings and domestic transactions.

Yes in my view, you can claim deduction under 80 TTA for interest on NRO account. There are basic difference between NRE and NRO account. In NRE account,  you can send forex directly or you can keep forex. But in NRO it is not possible. So it is similar to ordinary saving account maintained by Non resident.

Also in 80 TTA , no where it has been maintained that it is applicable only for resident. So in my view you can claim it.

Both NRE and NRO account should be maintained in Indian rupees only.

But from NRE A/c  you can repatriate the money any where freely, but From NRO account you cannot transfer money NRE a/c or outside India easily

As the interest generated in India with the NRO account balance , so I don't think there is any reasonable ground to deny deduction u/s 80TTA

.

I have all the accounts. So please check it properly from Bank.

For holding foreign currency you need to open FCNR account

All NRO & NRE account are INR dominated account, so all the money receive in foreign currency, you need to convert it in INR. You cannot maintain it in foreign currency.

Hope it is clear

Originally posted by : Samantha J
	Some CA 's need to visit bank ! What someone is saying that one cannot hold foreign currency if he is out of India and is NRI!

No that is not what anyone is saying.

Both NRO and NRE accounts are rupee denominated savings accounts for non-resident. Even if you deposit euro into them, there is a conversion into rupees at the time of deposit.

Non-rupee denominated accounts are a separate thing entirely. And a resident can have an account with a bank in India in several different currencies. These are typically for income / business / trade and are typically current accounts.