Is income earned in NRE and NRO accounts taxable in the hands of NRIs?
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FAQs on Provisions useful for non-residents
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NRI uses Non-Resident External (NRE) account to transfer foreign earnings to India. Income from interest on balances standing to the credit of NRE Accounts is exempt from tax under Section 10(4)(ii).
A Non-Resident Ordinary (NRO) Account is used to manage the income earned in India. Interest earned in an NRO account is taxable in the hands of NRI.