NRE AND NRO ACCOUNT Taxability

Respected sir/mam

Please me guide about NRE and NRO Account taxability regarding on incomes from Dividend.


Thanks
Replies (7)
Quick Summary
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.

In NRE you only can deposit Foreign currency same will be converted in to Indian rupees , NRE account is tax free .
In NRO account you can deposit any thing earned by NRI in India and Its fully taxable .So dividend income received in India is fully taxable in hands of share holder ,so if you deposit in NRO account it's taxable .
Lot of Thanks sir.
If the company paying dividend is an indian company then it wouldnt matter if its received in nre or nro account
Thanks sir
You are welcome
Sir ,what about that capital gain in NRE account from holding of Indian company share?
NIR can deposit only Income earned out side India in NRE Account ,
So capital gains on investment in shares in India taxable , in NRO account .

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