NRI services

Who is an NRI ?

• An individual will be treated as a resident in India in any previous year if he/she is in India for:
• Atleast 182 days in that year, OR
• Atleast 365 days during 4 years preceding that year and atleast 60 days in that year.
• An individual who does not satisfy both the conditions as mentioned above will be treated as “non-resident” in that previous year.
• An NRI can open four accounts in INR and/or in a foreign currency.
  • NRE Account
  • NRO Account
  • Foreign Currency Non –Resident Accounts (FCNR Accounts)
  • SNRR Account

Non-Resident External (NRE) Account:

• It is a savings account, to maintain income earned outside India
• Get tax-free interest in India
• Principal amount and interest earned can be withdrawn from an account in a foreign country
• Domestic credits are not allowed.

Non-Resident Ordinary (NRO) Account:

• It is used to manage your income earned in India such as income received from rent, dividends, pension etc.
• Withdrawal from India only up to a certain limit, for bonafide purposes like education, medical expenses and similar expenses
• 30% tax + applicable surcharge +education cess deducted at source on interest earned in India.

Foreign Currency Non –Resident Accounts (FCNR Accounts):

• A Term deposit account in US Dollars, GBP, EUR, JPY, AUD, CAD, SGD, HKD and CHF.
• Fixed tenures of up to 12 months, 36 months and 60 months.
• Interest income is not taxable in India.
• Principal amount and interest earned can be withdrawn from a foreign country

SNRR Account

• Any person resident outside India, having a business interest in India, can open a Special Non-Resident Rupee Account (SNRR account) with an authorised dealer for the purpose of performing transactions.

Non-Resident (Non-Repatriable) Rupee Deposit Accounts (NRNR Accounts)

• NRIs are permitted to open these accounts by transfer of freely convertible foreign currency funds from abroad, or from NRE / FCNR accounts.
• There is no income tax on the interest.