NRE AND NRO ACCOUNT Taxability

This discussion clarifies the tax implications for Non-Resident Indians (NRIs) regarding NRE and NRO accounts, specifically for dividend income and capital gains from Indian company shares. Generally, NRE accounts are tax-free for foreign-earned income, while NRO accounts are fully taxable for income earned in India. Dividend income from Indian companies is taxable regardless of whether it's deposited into an NRE or NRO account. Similarly, capital gains from Indian company shares are taxable and should be deposited into an NRO account.