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NRI Person - NRE Account - No Tax - Details

NRE is the Type of Account and NRI is the Person NON Resident Indian who is situated outside india.
NRE account can be opened by the Indian or Non Indian Native.

The Government of India has permitted NRIs to open rupee accounts in India in order to repatriate funds from their home countries. The two most common accounts are the NRE and NRO accounts.

NRE Account can be opened by any Indian who is Living Outside india. Most of the banks are providing facility to open these account from abroad itself.

NRIs having NRE account in India are permitted to hold and maintain foreign currency earnings in Indian rupees.

NRI - Non Resident Indian

A Non Resident Indian (NRI) as per FEMA 1999 is an Indian citizen or Foreign National of Indian Origin resident outside India for purposes of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. An individual will also be considered NRI if his stay in India is less than 182 days during the preceding financial year.

A Person of Indian origin (PIO) is a citizen of any country other than Pakistan or Bangladesh, if

a)   He/she at any time held an Indian Passport; or

b)   He/she or either of his/her parents or any of his/her grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act 1955 (57 of 1955); or

c)   The person is a spouse of an Indian Citizen or a person referred in above (a) or (b) clauses.

- Source : SBI

Features of NRE Account

  • Type : NRE Savings Bank / Current Account / Term Deposit / Special Term Deposit / Recurring Deposit
  • No Tax for the Income
  • No tax for the Interest calculated (in India)
  • Money transfer through Online (Net Banking)
  • Multicity Cheque Book (Can be used in any Branch outside the City also).

What can be Done through NRE Account

Only Foreign Funds can be Deposited in NRE Account. The Source of Fund must be NRI Person Money. Simply the Foreign currency can be deposited in this NRE Account.

You will get the Interest for the Account balance just like normal interest rate calculation.

No INR Indian Currency can be deposited directly to NRE Account, you should make it Foreign Currency to deposit.

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