Resident Ordinary Rupee Account:
Non Resident Ordinary
Account - NRO Account is generally maintained by Non Resident Indians
their Indian earnings like
rent, dividends, salary etc.
Indian earnings like rent, dividend,
pension etc. of NRI can not be
deposited in a Non Resident External ie. NRE
account therefore NRIs need to open a NRO Account.
Non Resident Indian (NRI) can open a Non Resident
Ordinary Account (NRO) in the form of Savings, Fixed Deposit, Recurring
Account in Joint Names
- NRO Accounts can be
opened in joint name with any
- (close relatives as defined in The
Companies Act 2013)
Funds from NRO accounts are not freely repatriable. However
repatriation subject to following conditions is permitted:
- Current incomes earned in India like rent, dividend,
pension etc. can be repatriated subject to applicable taxes being paid.
- Balances held in NRO accounts can
also be repatriated upto USD 1 million per financial year
for all bonafide
purposes subject to payment of applicable taxes and satisfaction of the
then current incomes and limit of USD 1 million per financial year,
balances in NRO accounts cannot be transferred without prior approval
Interest earned is
Interest earned on NRO Savings Accounts as well as interest earned on
NRO Fixed Deposits Accounts are
taxable at applicable tax rates under Income Tax Act.
Deposit to NRO
All Indian incomes like
rent, pension/salary, interest, dividend etc. of a
NRI are to be deposited in NRO account.
Sale proceeds from immovable
property held in India shall also be deposited in NRO Account.
of money received as
gift by NRI from close relatives being resident indians are also
as Indian Incomes and shall be deposited to NRO Account.
held in NRO accounts can be transferred to NRE Account
same account holder with in the overall ceiling of USD 1 million per
financial year and subject to payment of applicable taxes.
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