For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    NRE or NRO account? Which account should NRIs remit money?

    |
     NRE or NRO account? Which account should NRIs remit money?
    If you are an NRI and have to make a choice between remitting money into your NRO Savings Account or NRE Savings Account from abroad, always opt for the NRE account.
     

    Remember, that the interest earned in the NRE account is tax free and the bank will deduct no TDS as well. There is a straight tax deducted at source by banks on interest in your NRO savings account, which is as high as 30 per cent.

    Now, let's assume that you have an average balance of Rs 1,00,000 in your NRO Account. You would earn an interest of around 4 per cent in your NRO Account, since this is what banks presently offer.

    Now, the bank would give you an interest of Rs 4000 and then deduct Rs 1200 on the Rs 4000 paid, as tax deducted at source.

    In case of a NRE account, it is tax free and hence no TDS whatsoever is payable. Now, there is also another reason why your should always remit money into NRE Account. If you have an emergency in the country of residence, you cannot freely repatriate the balance in your NRO account to the country where you stay. There are certain caps and certain restrictions on repatriation.

    Remember, that amounts in the NRE account are freely repatriable. This means you can ask your bank in India to remit amounts to a bank say in Dubai, if you need the money in Dubai.

    It's always better to remit money into your NRE Account from abroad. Remember, you can always receive money into your NRO account from domestic residents, but, credit to a NRE Account can happen only when you remit from abroad or receive into your NRE Account from another NRI having an NRE account.

    GoodReturns.in

    Read more about: nris nre account nro account
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more