NRI bank account selector
NRE for income earned abroad, NRO for income earned in India, FCNR for term deposits held in foreign currency.
Recommended: NRE
Non-Resident External (NRE) — rupee account funded from abroad
- Tax: Interest is tax-free in India [s.10(4)(ii)].
- Repatriation: Fully repatriable — principal and interest, no cap.
- Why: Foreign-earned income parked in India belongs in NRE: tax-free interest, full repatriability.
Watch-outs:
- Held in INR — you bear rupee FX risk on conversion at remittance back.
- Cannot deposit Indian-source income into an NRE account.
How we calculate this
Source: Income Tax Department — — bracket schedule.
Last reviewed:
| Band | Rate |
|---|
- Foreign-earned income → NRE: interest tax-free [s.10(4)(ii)], fully repatriable, INR-denominated.
- Indian-source income (rent, dividends, pensions) → NRO: interest is taxable; bank deducts TDS at 30% (+ surcharge + cess) under s.195; repatriation capped at USD 1 M/year.
- Foreign-currency deposit need → FCNR-B: term deposit (1–5 yrs) held in USD/GBP/EUR etc., interest tax-free [s.10(15)(iv)(fa)], fully repatriable, no rupee FX risk for the depositor.
NOT financial advice - seek advice from a professional for your specific situation
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