Detailed information about NRO Bank Account
An NRO (Non-Resident Ordinary) bank account is a type of bank account in India designed for Non-Resident Indians (NRIs) to manage their income earned in India. It is used to deposit income such as rent, dividends, pensions, or any other earnings generated in India. The funds in an NRO account are denominated in Indian Rupees (INR).
Key Features of an NRO Account:
Purpose:
To manage income earned in India (e.g., rent, dividends, interest, etc.).
It is not meant for foreign income or remittances from abroad.
Currency:
The account is maintained in Indian Rupees (INR).
Repatriation:
Funds in an NRO account can be repatriated (sent abroad), but only up to a limit of $1 million per financial year, subject to applicable taxes and documentation.
Joint Account:
An NRO account can be held jointly with another NRI or a resident Indian.
Taxation:
Interest earned on an NRO account is taxable in India as per Indian tax laws.
NRIs may also be subject to Tax Deducted at Source (TDS) on the interest earned.
Types of Accounts:
NRO accounts can be savings, current, fixed deposit, or recurring deposit accounts.
Eligibility:
Only NRIs and Persons of Indian Origin (PIOs) can open an NRO account.
