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Difference between NRE and NRO account
Here's a table showing 5 key differences between NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts:
Feature | NRE Account | NRO Account |
Purpose | For parking foreign earnings in India | For managing income earned in India (rent, dividends, etc.) |
Currency Repatriation | Fully and freely repatriable (principal + interest) | Interest is repatriable; principal is subject to limits |
Taxability | Interest earned is tax-free in India | Interest earned is taxable in India |
Deposit Currency | Only foreign currency allowed | Both foreign and Indian currency allowed |
Joint Account Eligibility | Can be held jointly with another NRI | Can be held jointly with an NRI or a resident Indian |
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