What are the tax benefits to the NRNR deposit account holders?

Question: What are the tax benefits to the NRNR deposit account holders ?

Answer(s)

Raju Kanumuri: They enjoy the following tax benefits :
Income from the deposits will be free from Indian Income Tax.
The deposit will also be exempt from Gift Tax for one-time gifting (in the case of NRIs only).
Exemption from Income Tax will not be available to resident donee and those residents, who being joint holders, become owners of the deposit as survivor of the non-resident depositor.

Source : Reserve Bank Of India

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