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Can I transfer money from saving bank account to NRE Account

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  1. #1
    Random2389456

    Can I transfer money from saving bank account to NRE Account

    Hi Friends,

    I have a NRE and NRO account as well.

    I have some money in my Indian saving account.

    1 - Can I transfer money from Indian saving account to NRE account ?
    I like to do that because interest on NRE account is non-taxable.

    2 - What is the use of NRO Account ?

    3 - On NRE account, Will money be in form of Dollar or Rs?

    4 - Can I transfer money from NRE account to any other Indian saving account ?

    Please advice.

    Thanks in advance


  2. #2

    1. No

    2. To collect rent, other income in India and deposit it. You can do it with NRO and not NRE (see point 1)

    3. Indian rupees

    4. Yes


  3. #3
    Random2389456

    Thanks for reply...

    I have Indian saving account.
    And I have NRE account in different bank.

    Is it necessary to declare my Indian saving account as NRE too ?

    Quote Originally Posted by john.doe1985:
    1. No

    2. To collect rent, other income in India and deposit it. You can do it with NRO and not NRE (see point 1)

    3. Indian rupees

    4. Yes

  4. #4

    Join Date
    Apr 2016
    Posts
    239

    When your status changes to non resident you no longer can (as per rules) maintain a savings account since it is for residents. You have to convert your savings account to NRO account. Tax is deducted on interest paid on nro accounts at a flat rate and you should file a return every year for refund of the tax (if income is within exemption limit) or will get adjusted as per the 10-20-30 tax slab based on filed return and remaining refunded. For all other income for example from shares trading/rental income/other sources you need to pay quarterly advance tax.

    Funds in nro account is repatriate-able to a certain limit subject to tax clearence. you can't move funds from nro to nre account but can from nre to nro account. All funds in an nre account are non taxable and fully repatriate-able.