What is (NRE) Non-Resident External Rupee Account ?
A NRE (Non-resident External Accounts) account is a Rupee denominated account. Funds in NRE account is maintained in Indian rupees only. Any interest earned on this account are exempt from tax
Key Features of NRE (Non Resident External) accounts
- Funds in a NRE account will be maintained in Indian Rupees
- Source of funds into NRE accounts must be from your earnings abroad or from another NRE / FCNR-B account maintained in India
- Funds can be transferred from an NRE account to an NRO , NRE or Resident account
- You can have joint account with other NRIs
- Funds in NRE account is repatriable (That is, funds can be converted to any foreign currency)
- Interest income earned on the money in a NRE account is non-taxable in India
- NRI can have joint account with other NRIs ( Resident Indians cannot be joint account holders in NRE accounts)
- Power of attorney holder can operate the account ( that is, Power of attorney can make local, rupee payments on behalf of the NRI )
- NRE account is converted into a regular resident account if NRI returns to India permanently
