NRE vs NRO accounts: what every NRI investor must know before remitting
A practical breakdown of repatriation rules, tax treatment, and which account fits your income sources.
Choosing between an NRE and an NRO account is one of the first decisions an NRI investor makes, and getting it wrong can mean paying tax you didn’t need to, or running into repatriation limits at the worst possible time.
NRE accounts hold foreign income you remit into India — fully repatriable, tax-free interest, but only foreign-sourced funds can go in.
NRO accounts hold India-sourced income (rent, dividends, pension) — interest is taxable in India, and repatriation is capped at USD 1 million per financial year with supporting documentation.
Most NRI clients need both: an NRE account for savings you’re moving from abroad, and an NRO account for anything you earn inside India. Talk to your relationship manager before you remit — the account you pick determines both your tax bill and how easily you can move the money back out.
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