Posted on: 27-12-17 15:54:55
I was searching to find which account is suitable for OCI holders like me & came across this article -hope it may answer questions of people interested in these accounts.
http://www.moneycontrol.com/news/business/personal-finance/-1664527.html
Know the difference between NRE and NRO account
Many NRIs are often faced with the situation of maintaining a Rupee account in India. There are two options available with NRI interested in opening bank account in India - NRE or NRO account. Read this space to know the difference between these two accounts and know when to choose what account.
A Non-Resident Indian is often faced with the situation of maintaining a Rupee account in India. Primarily there are two reasons for opening such account: NRI wants to repatriate overseas earned money back to India and/or NRI wants to keep India based earnings in India. NRI has the option of opening a Non Resident Rupee (NRE) account and/or a Non Resident Ordinary Rupee (NRO) account. An NRO account can also be opened by a Person of Indian Origin (PIO) and an Overseas citizen of India (OCI).
Similarities between NRE and NRO accounts:
Both accounts can be opened as Savings as well as current accounts and are Indian Rupee accounts. One needs to maintain an average monthly balance of Rs 75000 in both NRE and NRO accounts.
The Differences between NRE and NRO accounts:
1. Repatriation: NRE account is freely repatriable (Principal and interest earned) while the NRO account has restricted repatriability i.e permitted remittance allowed from NRO is up to USD 1 million net of applicable taxes in a financial year after giving undertaking along with a certificate from a chartered accountant.
2. Tax Treatment: NRE account is Tax free (no Income tax, wealth tax and gift tax) in India. On the other hand the interest earned in NRO account and credit balances are subject to respective income tax bracket and are also subject to applicable wealth and gift tax.
3. Deposit of Rupee funds generated in India: If an NRI/PIO/OCI is earning income originating in India (such as salary, rent, dividends etc.) he/she is only allowed to deposit it in NRO account. Deposit of such earnings is not permitted in NRE account.
4. Joint Holding: NRE account can be iointly held with another NRI but not with resident Indian. On the other hand NRO account can be held with NRI as well as resident Indian (close relative) as defined under Section 6 of the Companies Act 1956.
Choose NRE accounts if you:
• (Primary reason) want to park your overseas earnings remitted to India converted to Indian Rupees;
• want to maintain savings in Rupee but keep them liquid;
• want to make a joint account with another NRI;
• want Rupee savings to be freely repatriable
Choose NRO account if you:
• (Primary reason) want to park India based earnings in Rupees in India;
• want account to deposit income earned in India such as rent, dividends etc;
• want to open account with resident Indian (close relative)
They are changing the rules. But it is slow in coming.
FH.
https://timesofindia.indiatimes.com/nri/us-canada-news/NRIs-can-now-open-joint-accounts-with-resident-Indian/articleshow/10005417.cms?utm_source=browser_notification&utm_medium=chrome&utm_campaign=TOI_browsernotification
Quote:
Originally posted by ChandraGupt
I think NRO account is better for OCI card holders like me (as per my situations)..
Quote:
Originally posted by ChandraGupt
I think NRO account is better for OCI card holders like me (as per my situations)..
If you are sending money from Canada to India in CAD $ i.e foreign exchange coming in from abroad, NRE is better.
On NRE there No tax, No TDS, No need to file a return to get TDS back with Indian IT, repatriation of the money back to Canada is much easier than NRO.
NRO is better if you are getting money in India in Rupees, either a rental income, salary etc. But you will pay 30 % TDS on the interest. You can get it back by filing a IT return depending on your income, but will take a while.
Quote:
Originally posted by MITRON
Quote:
Originally posted by ChandraGupt
I think NRO account is better for OCI card holders like me (as per my situations)..
If you are sending money from Canada to India in CAD $ i.e foreign exchange coming in from abroad, NRE is better.
On NRE there No tax, No TDS, No need to file a return to get TDS back with Indian IT, repatriation of the money back to Canada is much easier than NRO.
NRO is better if you are getting money in India in Rupees, either a rental income, salary etc. But you will pay 30 % TDS on the interest. You can get it back by filing a IT return depending on your income, but will take a while.
http://www.bbc.com/hindi/india-42914397
in my case I have few Fixed Deposits(in rupees) & planning to sell my Mutual funds in India(in rupees) so can't convert ordinary account to NRE , only option is I can request bank to convert it to NRO I guess.
another issue will be if I convert accounts to NRO--it will be hard to bring that money to Canada in CAD$--?
We all get hammered now and then..: Here is a Bolt from the Blue (Or is it from the Blacks?)
"LONG TERM CAPITAL GAINS EXCEEDING RS 1 LAKH WILL BE TAXED AT 10% WITHOUT INDEXING "
Read more at: https://economictimes.indiatimes.com/news/economy/policy/key-highlights-from-budget-2018-ease-of-living-is-new-catch-phrase/articleshow/62735935.cms
Well a few are saying that the Markets have tanked sufficiently enough to wipe out a small gain made and now they have NO gains to report hence it is O.K.
I also came across a Bank that might help you a lot, which will enable you to open up with them and get the Money transferred through the Proper Channels. Talk with them first and then decide to open an Account with them, if you find them SUITABLE to your requirements.
Here are a few details . : Interest .. • W.e.f. December 22, 2011, interest for all rupee savings accounts will be calculated on the daily closing balances maintained in the account.
• Interest rate of 6.25% p.a. is applicable to balances of INR 1 Crore & above, 6% p.a. for balances of INR 1 lakh upto INR 1 Crore and 5% p.a. for balances upto INR 1 lakh*
STILL A GOOD RATE... Better than what we get here in Canada even after paying 30% tax there.+
*Rates are subject to change at the sole discretion of YES BANK. Conditions apply..
Taxation
• Interest earned on NRO Savings Account is subject to Tax deduction at source at 30% and education cess at 3% totaling to 30.90%
Average Monthly Balance: • Minimum Average Monthly Balance requirement is INR 10,000/- only
Taxation .
Interest earned on NRO Savings Account is subject to Tax deduction at source at 30% and education cess at 3% totaling to 30.90%
Documents required from you for account opening (need self attestation by the account holder himself) ( KINDLY SEND SCAN OF BELOW DOCUMENTS SO THAT WE CAN ASSIST IN FILLING UP YOUR DIGITAL FORMS)
- Photocopy of Passport (Front & Back copy and govt. stamp copy which would be there on first page only)
- Photocopy of VISA What is this?
- Photocopy of pan card
- Communication address proof
THIS IS FROM AN E-MAIL TO ME.
Request you to reply to this email mentioning a suitable date & time for us to reach you to know more about Products and Services.
Looking forward for a long and fruitful relationship and would be delighted to assist you.
For any assistance, feel free to mail me or call me on my Mobile No 8879947306 .
Sushree Sangeeta Das, Sr.Officer [Sales Alternate Channel] | SAC |
YES BANK Ltd. YES BANK Tower, IFC 1, 5th Floor, Elphinstone (W), Senapati Bapat Marg, Mumbai - 400 013
|Mobile : 8879947306|+91 22 33477593|
Please check for yourself.
FH.
