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Q: What are the permissible debits/credits to the NRE/FCNR accounts?

A: Permissible Debits You can freely move funds along with interest earned, anywhere outside India without the prior approval of the Reserve Bank of India (RBI). This movement of funds is subject...

Q: What are the difference between an NRE account, NRO account and FCNR account used by NRIs?

A: A Non-Resident (External) Rupee (NRE) account is a Rupee account opened and operated on a repatriable basis. Such an account can be opened with funds that are either remitted from abroad or local...

Q: Can two separate trading accounts namely (NRE&NRO) be opened by NRI?

A: Yes. NRIs can have two separate trading accounts based on NRE & NRO.

Q: How can NRIs do the sale/transfer of shares held by them with repatriation benefits?

A: In the case of shares /debentures /bonds acquired by NRIs through stock exchanges under the Portfolio Investment Scheme, general exemption has been granted for transfer through stock exchanges...

Q: Are NRIs permitted to transfer/sell their shares held on non-repatriation basis to resident freely?

A: Yes. General exemption has been granted by Reserve Bank for transfer/sale of shares/debentures/bonds by NRIs/OCBs through stock exchanges if such transfers are made in favor of an Indian citizen or...

Q: What is the rate of interest charged on NRO/NRE accounts?

A: While interest on loans up to Rs. 2 lakhs against NRO/NRE fixed deposit accounts will be charged two percent above the rates paid banks for the concerned deposits, repayment of loans will have to...

Q: Can funds in NRE/NRO accounts be repatriated outside India?

A: Yes. Banks maintaining the accounts have been authorised to permit such payments, Airlines/Shipping companies and their agents have also been permitted to accept payments in rupees from the funds...

Q: What are the benefits of RFC accounts?

A: The benefits of RFC accounts are: In case of conversion from FCNR(B) accounts there is no exchange loss. Balance in RFC account can be used for local payments and can be remitted abroad for all...

Q: Who can open RFC account?

A: A returning NRI who was resident outside India earlier and are returning now for permanent stay are permitted to open RFC account.

Q: What is the rate of TDS on NRO account?

A: Banks have an obligation under Sec. 195 of Income Tax Act, 1961to deduct tax at source in respect of interest income of Non-Resident Indians. The rate of TDS is specified in the Finance Act, every...