NRE | NRO |
An NRE account is opened by an NRI in India, where he/she can park his foreign earnings. | An NRO account is opened by an NRI in India to manage the income he/she earns from India. This includes rent, dividend, pension, interest, etc. |
You don't need to pay any tax if you have an NRE account | Interest earned on an NRO account is 30% taxable. |
If you have an NRE account, you can transfer the amount on the NRE account to a foreign account | In the case of an NRO account, you can transfer your interest and in the case of the principal amount, you can remit only up to USD 1 million in a fiscal year. |
In your joint NRE account, you can add another NRI. | An NRI can open a joint NRO account with one or more NRI or Indian citizens. |
Due to currency fluctuation, there is a risk of losing money while withdrawing from the NRE account. | In an NRO account, there is no risk of withdrawing money by converting into INR. |
NRI | NRO |
A Non-Resident Indian (NRI) account can be used to manage cash and money gained in Indian rupees in that country. | A person with an NRO account can move money from one NRO account to another, but they cannot move money from an NRO account to an NRE account. |
An NRI savings account typically accepts deposits in Indian rupees, while it also accepts deposits in other currencies. | It is not possible to deposit foreign earnings into an NRO account. |
There is a 1 million dollar cap on money that can be repatriated from an NRI account per financial year. | If you want to save your income from India in Indian rupees, you can choose NRO accounts. |
An NRI account can be held jointly with another NRI or native Indian relatives. | An NRO account can be opened with an NRI or any Indian citizen. |
Difference between NRE and NRO account
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April 25, 2022
2022-04-25T17:59:44+00:00 2022-04-25T17:59:45+00:00Comment
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