Non-Resident Indians people are those who live more than 182 days in abroad for a year. NRI should take smart decisions to manage their money earned from foreign country. A NRI may face some difficulties while maintaining their bank accounts while involving in transactions. Such transaction may relate to buying or selling a property in India, investments plans in financial schemes etc. Other scenarios may include funds transfer, repatriation, mutual funds investments, home loan transfer, fixed deposits and more.
NRO person can deposit his/her foreign amount into NRO account as saving account automatically converts into nro account. However, he/she has another option for depositing money like nre and fcnr account. Today, we keep focus over all bank accounts need to maintain their funds in India. Check out pros and cons of each account out of them.
As you know internet is full with tones and tones of blogs but few of them are relevant. To keep this into mind, we make research intelligently and write for a topic in depth. So take a quick journey through our article.
Take a look at advantages of NRE account over NRO account
- NRE account is tax free and not repatriation limit at such account which means if someone has nre account, he/she can transfer whole amount back to foreign account.
- NRO account are taxable and repatriation limit is application.
- Also, foreign currency may be deposited either in nre or nro accounts.
- Income earned from Indian sources will be deposited only in nro account.
- The international debit card allows you to manage and withdraw funds 24*7 from nre accounts
- You cannot dispatch more than 1 million USD together with taxes from your NRO account in a financial year.
- You can deposit only foreign currency into nre account whereas nro account allowed both either home country or foreign country.
- NRO account may be opened jointly rather nre account not alloed such facilities.
- NRO account maintain money into foreign currency whereas nre account convert into Indian currency so there is risk if Indian currency becomes devalued suddenly.