Whats the difference in the tax treatment for interest earned on an NRE and an NRO account?
The interest earned on any type of NRO deposits are taxed under the account holder’s tax bracket. On the other hand, interest earned on the NRE account is totally exempted from income tax, and the credit balances in the account don’t attract any wealth tax. Any gift given to a close relative doesn’t attract gift tax.
Related Questions
- Is there any difference in tax treatment to running a service directly through the credit union under Incidental Powers or through a limited liability company ("LLC") CUSO?
- Why is there a difference in the amounts shown on ‘Reports’ and the amounts displayed on the ‘Itemised account and tax type’ summary screens?
- Can a NRI/PIO set up a NRI Demat Account in both NRE and NRO status?
