Are any tax concessions available to NRIs on balances/deposits held in NRE/FCNR accounts?
• Yes. Income from interest on moneys standing to the credit of NRE/FCNR accounts is exempt from Income-tax. Gifts from such accounts to close relativets are also free of Gift-tax. • Are similar concessions available in respect of balances held in NRO accounts? • No. • What are the tax benefits to the NRNR deposit account holders? • • Income from the deposits will be free from Indian Income-tax. • The deposit will also be exempt from Gift tax for one-time gifting (in the case of NRIs only). • Exemption from Income-Tax will not be available to resident donee and those residents,who being joint holders, become owners of the deposit as survivor of the non-resident depositor. • What about tax benefits on funds held in FCNR accounts? • Tax Exemption on interest earned on deposits held in foreign currency is available to non-residents and persons who are not ordinarily resident in India as defined under Income-tax Act, 1961. • What is the approved method of sending remittances into India? •
