Right Account, Right Tax Treatment — Maximise Your India Returns
NRIs maintaining bank accounts in India must use the correct account type for different purposes: NRO (Non-Resident Ordinary) accounts hold India-earned income (rent, dividends, salary) and are taxable in India; NRE (Non-Resident External) accounts hold foreign-earned income remitted to India and are tax-free in India plus freely repatriable. FCNR (Foreign Currency Non-Resident) deposits are held in foreign currency, protect against rupee depreciation, and are tax-free.
VITTAX advises NRIs on the correct account structure, tax implications of each account type, DTAA benefits on NRO interest, strategies for transferring funds between NRO and NRE accounts (subject to RBI conditions), and compliance requirements. Incorrect account usage can lead to FEMA violations and avoidable tax liability.
NRO vs NRE vs FCNR — At a Glance
Pricing
NRO/NRE Advisory
₹1,999 one-time advisory
Account structuring & tax planning advisory
Ideal for: NRIs setting up or restructuring India bank accounts
FAQs
Is interest on NRE fixed deposits really tax-free in India?
Yes — interest earned on NRE accounts and FCNR deposits is completely exempt from Indian income tax under Section 10(4) of the Income Tax Act, as long as the account holder maintains NRI status.
Can I transfer money from my NRO to NRE account?
Yes — up to USD 1 million per year, subject to TDS payment on NRO funds, CA certificate, and bank's FEMA compliance process. VITTAX manages this end-to-end.
⚡ Key Tax Sections
NRO vs NRE clarity, tax-free interest planning, DTAA benefits, FEMA-compliant transfer — all in one advisory