Tds rate in case of transfer of fund from nro a/c to nre a/c

Hello Navdeep,

It's easy to transfer fund from an NRE to NRO account. But it's not possible to transfer fund from NRO to NRE account.  Once you transfer fund from an NRE to NRO account, the amount is non repatriable. Consequently, you cannot transfer it back.

The interest earned on any type of NRO bank as well as the credit balance in this kind of account are taxed under the account holder's tax bracket. On the other hand, interest earned on the NRE account is totally exempted from income tax, and the credit balances in the account don't attract any wealth tax. any gift given to a close relative doesn't attract gift tax.

Regards,

Deepak Garg