Nre account

Hi,

U need to open NRE Account

A non resident Indian like you can open NRE account as welll as NRO account . The NRE Account are INR account as well as the Foreign Currency account which are open with any Bank in India and it is considered as a account outside India . However the NRO account are the normal bank account in INR and are considered the account within India . A credit from outside India in both the account are tax free and there is no tax . However the liability of tax arises only when there is transfer of fund from NRO account to NRE account or any other credit in the NRE account , from India .

So you can transfer your fund in the NRE or NRO account , however if the funds are repatriation basis , better route through it with the NRE account .

If you transfer money to your normal NRI Savings account and not NRE account, any interest earned on such income will be assessed to tax and the actual tax liability depends upon the quantum of interest earned. However, you may attract TDS for which you will need to file IT return to claim refund, if no tax is payable.

If you intend to repatriate your money from your NRI Savings account back to you, you need to get CA certificate for such transfer.

In the case of NRE account, the account will be held in foreign currency and you will not be exposed to the risk of currency fluctuation.