Planning to send money to India? If the answer is yes, you can open a NRE account and send money to India with ease.
What is a NRE account?
It is a type of account that any NRI can open. This account is meant for repatriating funds that come from outside earnings. It enables the NRIs to transfer their earnings or money to India securely. If you open a NRE account and send money from UK or USA to India, it gets converted into INR (Indian currency).
Why open a NRE account?
It is recommended to open a NRE account if you want to initiate a money transfer to India. There are various reasons for which this account is beneficial:
If you are wondering how to transfer money from USA to India, opening a NRE account is a good option. This account allows transfer of funds freely from a country to India. It gives you two-way transferability which means, money can be transferred from the NRE account to the foreign account. You don’t have to pay income tax, wealth tax or any gift tax in India for transfers made to NRE account. The interest you earn on the savings in NRE account will be exempted from taxes.
If you want, you can easily get the NRE account converted into a regular resident account. The lowest minimum balance you need to maintain in this type of account is 10,000 INR. Since such accounts are tax free, there are no income taxes imposed on money transfer to such accounts. For instance, if you are working in the US, your earnings will be treated as income outside India. Due to this, the money will not be taxable in the country if being sent from the US.
What is a NRE account?
It is a type of account that any NRI can open. This account is meant for repatriating funds that come from outside earnings. It enables the NRIs to transfer their earnings or money to India securely. If you open a NRE account and send money from UK or USA to India, it gets converted into INR (Indian currency).
Why open a NRE account?
It is recommended to open a NRE account if you want to initiate a money transfer to India. There are various reasons for which this account is beneficial:
If you are wondering how to transfer money from USA to India, opening a NRE account is a good option. This account allows transfer of funds freely from a country to India. It gives you two-way transferability which means, money can be transferred from the NRE account to the foreign account. You don’t have to pay income tax, wealth tax or any gift tax in India for transfers made to NRE account. The interest you earn on the savings in NRE account will be exempted from taxes.
If you want, you can easily get the NRE account converted into a regular resident account. The lowest minimum balance you need to maintain in this type of account is 10,000 INR. Since such accounts are tax free, there are no income taxes imposed on money transfer to such accounts. For instance, if you are working in the US, your earnings will be treated as income outside India. Due to this, the money will not be taxable in the country if being sent from the US.