Nri income tax queries

Thanks for the response. I understand that I need to file ITR-2 as a NRI.

The other question being:

Are remittances taxed for NRIs?

Thanks

Thanks for the response.

Just a last question..Is it good to convert a normal savings into NRE account etc.

Is there any impact of not converting the normal saving account to NRE account?

Also my question on credit worthiness since ITR I believe is primary input..will the other inputs like bank statements address the credit worthiness part

Thanks

Thanks Pravin.

Just a last question on the need of NRE account or shall the normal saving account will serve the purpose.

Is there any impact of not converting the normal saving account to NRE account?

Thanks

1. NRI living abroad normally maintains two types of accounts. Non-Resident Rupee Account (NRE) and Non-Resident Ordinary Rupee Account (NRO)   
2. NRE account is an account maintained by a Non-resident for repatriation of his foreign income to India and maintain the same in Indian denominated rupee of your foreign income. This can be in any form like savings, current, etc. The important point to be noted in here is that this account will not be taxable as it is nothing but your foreign income denominated in Indian rupee. Hence, interest earned on this account will not be taxable. 
3. On the other hand NRO account which is also maintained by NRI for his Indian income. We all know NRI being a non-resident cannot have a normal savings account as residents. Hence NRO account. This account will have all your Indian income like FD interest, Income from House property and so on. Any interest earned on this account will be taxable. 
4. So it would be prudent for you to maintain two accounts (NRE and NRO) for the purpose of proper accountability. Otherwise, your foreign income could be mixed up with Indian income or vice versa. 
Please correct me if the above interpretation has an alternative view.