Are any tax concessions available to NRIs on balances/deposits held in NRE/FCNR accounts?
Yes. Income from interest on funds held in NRE/FCNR accounts is exempt from Income-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? |
|
They enjoy the following tax benefits: |
|
|
|
i) |
Income from the deposits will be free from Indian Income-tax. |
|
ii) |
The deposit will also be exempt from Gift tax for one-time gifting (in the case of NRIs (only). |
|
iii) |
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 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 exchange.
Can remittances be sent into India otherwise than through the medium of a bank in the country of residence of the remitter?
Yes. Exchange Houses in the Gulf countries have been permitted to send remittances into India by means of DDs, MTs and TTs drawn on banks in India.
...continued
