Module: | NRO Accounts, Tax Rules & Limits
Q7: Karan, an NRI based in the UK, has several sources of funds, he wishes to manage in India. He decides to open an NRO (Non-Resident Ordinary) account. Which of the following transactions are permissible credits to this NRO account, under RBI regulations?
1. Monthly rental income, received from his apartment in Mumbai.
2. Pension payments, received from his former employer in India.
3. A transfer of funds, from his existing NRE account, to this NRO account.
4. Direct deposit of his salary earned in the UK, into this NRO account.
2. Pension payments, received from his former employer in India.
3. A transfer of funds, from his existing NRE account, to this NRO account.
4. Direct deposit of his salary earned in the UK, into this NRO account.
✅ Correct Answer: B
NRO accounts are for managing Indian-sourced income like rent and pension.
Transfers from NRE to NRO are allowed.
Foreign salary is permissible but ideally goes to NRE for repatriation benefits.
Transfers from NRE to NRO are allowed.
Foreign salary is permissible but ideally goes to NRE for repatriation benefits.