What is the fundamental difference between NRE and NRO bank accounts?

What is the fundamental difference between NRE and NRO bank accounts? 

  • NRE (Non-Resident External): Used for parking foreign earnings in India. It is 100% tax-exempt and fully repatriable. 

  • NRO (Non-Resident Ordinary): Used for managing income earned within India (rent, dividends, etc.). It is taxable and has a repatriation limit of $1M per financial year. 

Understand NRE vs. NRO Accounts: 

Learn the fundamental differences between NRE and NRO bank accounts, including the source of funds, taxation, and repatriation rules to choose the right account for your needs. 

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