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3 Reasons An Nro Account Is Right For You

By Author: Neha Sharma
Total Articles: 1043

NRO stands for Non-Resident Ordinary. It is a rupee account or denominated in rupees. It can be in the form of a current account, savings account, term deposit account or a recurring deposit account. These accounts are generally used by NRIs who earn income in India (Say from rentals, from their real estate properties, pension, etc.). While the principal amount is completely tax free, the interest you earn on that principal is taxed at 30.9%. NRIs will be always in a profit if they open NRO account. NRO accounts can be held either in single or as a joint account. The joint account holder need not be an NRI and can be a resident as well. Similarly, the beneficiary can be an NRI or a resident. However, it must be noted that if you return back to India and are no more an NRI then this account needs to be converted to a normal account. So, research well before you open NRO account.

Benefits of NRO account:

• Withdraw cash and shop in India with your EasyShop NRO debit card.
• Entrust a relative or friend with an additional ATM card.
• Local representative can operate the account with a Letter of Mandate.
• Open an NRO account jointly with an Indian resident.
• Conduct transactions online, 24x7 securely with net-banking.
• Manage your account easily with phone-banking.
• Bank from any metro in India with intercity banking.
• Pay utility bills – electricity, phone, and mobile phone – payment by a simple registration.
• Get a personalised cheque book.
• Appoint a beneficiary to operate the account with the nomination facility.
• Free email statement facility.
• Interest earned on these accounts is high as banks can themselves determine interest rates.
• Nomination facility is available with both NRI and resident individuals.
• Manage your Rupee funds conveniently in India from anywhere in the world.
• Earn higher interest rates on your account

However, interest on the available balance in NRO accounts is liable to taxes. Also, account holders are not allowed to repatriate this interest outside India. But amount deposited in these accounts from the sale of property can be repatriated until the acquisition cost.

Author Bio :- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching on NRO accounts. She wishes to give advice on the importance of opening a NRO account in this article.

Total Views: 244Word Count: 393See All articles From Author

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