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? • The approved method of sending remittances into India is through normal banking channels. • At what rates are remittances in foreign currencies made by NRIs converted by banks into rupees? • Such remittances will be converted by banks at the market rate of excha
