About NRE, NRO & FCNR Accounts

 About NRE, NRO & FCNR Accounts in nutshell:

NRE ACCOUNT:

Account Currency -> INR ( Not possible to keep in other currencies)

Amount is 100% Repatriable

Interest earned is 100% tax free

FD can be for 1 Year to 10 Years

SBI interest rate for NRE FD -> 1 Year to 2 Years  5.1%

                                                       2 Year tp 3 Years-> 5.2%

You can not put capital gain out of sale from your Indian assets in NRE account

Permissible Credits:

• Remittance from outside India

• Maturity proceeds of Investments ( Only if done on NRE basis)

• Current Income in Inda ( with CA Certificate and some forms also need to be filled)

NRO ACCOUNT:

  After becoming NRI ( as per IT Act and FEMA) all existing accounts need to be converted as NRO Account

 It is generally run as a savings account

Account Currency -> Only in INR

Type of Accounts-> Savings,Current,Reccuring & FD

Term Deposit-> 7Days to 10 Years

Interest earned is Taxable

TDS applicable is 31.2%

Non Repatriable Account – Except 1Million USD per year 

Once the NRI come back and become Resdint, he has to convert the account to Indian Resident Savings account

FCNR ACCOUNT:

Currency-> Foreign Currency ( USD,Euro, GBP etc)

Interest earned is 100% tax free

Amount is 100% Repatriable

FCNR can be kept only in the form of term deposit

Tenure – 1 Year to 5 Years