1.
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Eligibility
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Any person resident outside India including an NRI who is a citizen of India or a foreign citizen of Indian origin residing outside India as also a foreigner and an Overseas Corporate Bodies (OCBs).
Opening of accounts by individual/entities of Bangladesh/Pakistan nationality/ownership requires approval of Reserve Bank. |
2
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Currency
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Indian Rupees.
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3
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MODE OF DEPOSIT
Period
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Income from domestic non-repatriable sources or realisations from local investments / sources ,
transfer from NRE/FCNR accounts ; forex remittance from abroad or deposit of foreign exchange during visit to India
15 days to 120 months
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4.
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JOINT HOLDING
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Permissible with other NRIs as well as Residents. (resident attorney can also operate).
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5
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INTEREST
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Banks can offer at par with resident accounts.
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6.
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REPATRIABILITY
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Interest Repatriable- subject to payment of tax
Balance repatriable upto US$ 1 mn per financial year [under US $ one million scheme]
Repatriation from NRO to NRE is permissible w. e. f. 07th May 2012. |
7
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LOANS
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Available to account holder as well as third party resident in India
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8
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NOMINATION
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Permissible with NRIs as well as Residents.
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9.
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TRANSFERS
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Permissible in account holder's other NRO accounts or NRE accounts.
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10.
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VARIOUS TYPES OF ACCOUNTS
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Saving, Current, Recurring and Fixed Deposits account.
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11
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PREMATURE WITHDRAWAL
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Permissible: - However for period of less than 15 Days - No interest payable ; above 15 Days - Subject to Penalty - As per Bank Rules.
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12
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TAXABILITY
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Interest income liable to tax
Balance not subject to Wealth Tax.
No Gift Tax provisions in India . However w.e.f. 1-4-2006 amount received in excess of Rs.50,000 by way of gifts from persons other than specified relatives is included in donee’s income and chargeable to income tax. |
13.
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TAX DEDUCTION
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Banks required to deduct tax at source from interest payable at rate of 20% if initial credit from NRE/ FCNR or forex remittance otherwise 30%.+ surcharge & education cess.
NRIs can also claim benefits of Dual Tax Treaty tax rate.
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14
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RETURNING NRIs
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NRO account is to be redesignated as resident account immediately upon return
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15.
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PERMISSIBLE CREDITS
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Income from domestic non-repatriable sources or realizations from local investments / sources
Remittances to India in any permitted foreign currency.
Personal cheques drawn in foreign currency and/or bank drafts drawn in foreign currency or Indian rupees drawn abroad.
Foreign currency / TCs deposited by NRI during visit to India . Import of currency exceeding US$ 5000 and TCs of equal amount require a Currency Declaration Form(CDF).
Any other credit if covered under general or special permission granted by Reserve Bank.
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16
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PERMISSIBLE DEBITS
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Local disbursements.
Interest fully repatriable subject to tax.
Remittances outside India upto and under US$ 1 mn per financial year.
Transfer to NRO accounts of the account holder or another NRI.
Investment in shares/securities /commercial paper of an Indian company or for purchase of immovable property in India permitted under FEMA on non-repatriation basis.
Any other transaction if covered under general or special permission granted by the Reserve Bank.
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