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Key Takeaways: NRIs who earn income in India need an NRO account to manage the funds. Read on to know more about what an NRO account entails.
What is NRO Account?
NRO stands for Non- Resident Ordinary Account. It is a type of account that allows NRIs to deposit their foreign and Indian income. NRIs who have income sources in India like rental income, FD income, income from mutual funds dividends etc., can deposit their earnings in the NRO Account.
Let’s get to know a bit more about the features of an NRO account.
Repatriation: An NRO account allows you to repatriate your interest income and the principal amount subject to certain conditions. The Government of India has capped this amount at USD 1 million for a financial year after paying taxes.
Taxation: Any interest amount earned on the principal in an NRO account is subject to 30% taxation, deductible at source.
Ownership: An NRO account provides you with the option of a joint holding with a resident Indian on a ‘former’ or ‘survivor’ basis. Besides this, you can also open one with another NRI.
Withdrawal: An NRO account provides you with the flexibility to receive funds in either Indian or foreign currency. However, the withdrawal can only be in INR. You can also transfer money from your NRE account to your NRO account effortlessly.
The following categories of individuals are eligible to open an NRO Savings account –
How to open an NRO account?
You have two options to open an NRO account. They are as follows -
To open an NRO account, you must submit documentary proof of your non-resident status.
Final Note: If you wish to open an account for your overseas income, you can opt for an NRE account too which is exempt from taxes. To open an NRO account, get in touch with DBS Treasures and our Relationship Managers will guide you through the steps.