Please explain about Nre & Nro Account and their differences?
Answers!
Both NRE and NRO are used by Non Residents to deposit their money
Differences
NRE
NRO
It means Non Resident Rupee Account
It means Non Resident Ordinary Rupee Account
It is used if a Non Residents want to bring foreign earnings into India
It is used if a Non Residents has Income in India which he wants to keep in India
It is Tax Free
It is taxable as per Income tax Act
Income earned in India cannot be deposited
Income earned in India can be deposited
Joint Account can be handled with another NRI Only
Joint Account can be handled with another NRI as well as Indian Resident
This account is freely repatriable(any amount can be withdrawn from it)
Max 1 Million net of taxes can be withdrawn
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Answer the question...
Both NRE and NRO are used by Non Residents to deposit their money
Differences
| NRE | NRO |
| It means Non Resident Rupee Account | It means Non Resident Ordinary Rupee Account |
| It is used if a Non Residents want to bring foreign earnings into India | It is used if a Non Residents has Income in India which he wants to keep in India |
| It is Tax Free | It is taxable as per Income tax Act |
| Income earned in India cannot be deposited | Income earned in India can be deposited |
| Joint Account can be handled with another NRI Only | Joint Account can be handled with another NRI as well as Indian Resident |
| This account is freely repatriable(any amount can be withdrawn from it) | Max 1 Million net of taxes can be withdrawn |
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