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Non Resident Ordinary Rupee Account:

Non Resident Ordinary Account - NRO Account is generally maintained by Non Resident Indians to deposit 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.

A Non Resident Indian (NRI) can open a Non Resident Ordinary Account (NRO) in the form of Savings, Fixed Deposit, Recurring or Current account.

Account in Joint Names

  • NRO Accounts can be opened in joint name with any other NRI
(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 (April-March) for all bonafide purposes subject to payment of applicable taxes and satisfaction of the Authorised Dealer.
Other then current incomes and limit of USD 1 million per financial year, balances in NRO accounts cannot be transferred without prior approval of RBI.

Interest earned is Taxable

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 Account:

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.

Amount of money received as gift by NRI from close relatives being resident indians are also treated as Indian Incomes and shall be deposited to NRO Account.

Fund Transfer

Money held in NRO accounts can be transferred to NRE Account of the 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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