legalanswers.in logolegalanswers.in

NRI & OCI Legal Hub

Aadhaar for NRIs, property repatriation, and OCI status.

What are NRE, NRO and FCNR accounts? Complete guide to opening an NRO account in India

NRE (Non-Resident External) — for foreign earnings remitted to India, fully repatriable, tax-free in India; NRO (Non-Resident Ordinary) — for Indian-sourced income (rent, pension, dividends), repatriable up to USD 1 million per financial year, subject to 30% TDS; FCNR (Foreign Currency Non-Resident) — foreign currency fixed deposit, tax-free, fully repatriable. To open an NRO account you need your passport, visa or work permit, overseas address proof, and PAN — or Form 60 if you do not yet have a PAN card.
Reference: Foreign Exchange Management Act, 1999; RBI Master Direction on Deposits and Accounts; Income Tax Act, 1961 (Sections 6, 10(4)(ii)); Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

How is tax residency determined in India for NRIs and returning Indians?

Under Section 6 of the Income Tax Act, 1961, individuals are Resident if (a) 182+ days in India in financial year, OR (b) 60+ days in India + 365+ days in preceding 4 years (60 days extended to 120 days for Indians whose Indian income exceeds ₹15 lakh + other conditions). RNOR (Resident but Not Ordinarily Resident) for 2-3 years on return — favourable tax treatment.
Reference: Income Tax Act, 1961 (Section 6); Foreign Exchange Management Act, 1999; Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015; India's DTAAs