BANKING AFFAIRS

Detailed explanation-1: -An NRO account is a savings or current account held by NRIs in India to manage their income earned in India. Account-holders can deposit and manage their accumulated rupee funds without any hassle. The account allows you to receive funds in Indian or Foreign currency.

Detailed explanation-2: -In India, the interest earned on deposits in NRO accounts is fully taxable. The interest income on funds in an NRO account is subject to tax deducted at source (TDS). A 30% tax on the NRO account, in addition to the applicable cess and surcharge, is levied on the interest income from these accounts.

Detailed explanation-3: -An NRO Account is your Savings Account for NRIs, that can be utilised to receive income and earnings or payments for expenditures in India. Additionally, this account is customised to accumulate the deposit earnings in India through rent, dividends, salaries, consulting fees, etc.

Detailed explanation-4: -Where to Deposit the Rental Income for NRI. After paying tax on rental income of an NRI property owner, the taxpayer needs to transfer the remaining rent amount to the property owner’s bank account. If the taxpayer is an Indian resident, they need to submit the rent in the NRO account of the property owner.

Detailed explanation-5: -Answer: An NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India.