NRE vs NRO Account Calculator
Should you use an NRE or NRO account for your transfer? Compare tax implications, repatriation limits, and effective returns.
What is an NRE Account?
A Non-Resident External (NRE) account is for depositing foreign earnings in India. Key features:
- Interest earned is tax-free in India
- Principal and interest are fully repatriable
- Account is maintained in INR
- Ideal for savings you may want to move back abroad later
What is an NRO Account?
A Non-Resident Ordinary (NRO) account is for managing income earned in India (rent, dividends, pension). Key features:
- Interest is taxable in India (TDS at 30% + surcharge)
- Repatriation limited to $1M USD per financial year (with CA certificate)
- Can deposit both Indian and foreign income
- Ideal for managing India-sourced income