Can I deposit Indian rent into an NRE account?

No. Income earned in India, such as rent, goes into an NRO account.

Can DTAA reduce TDS on NRO interest?

Often yes — give the bank a tax residency certificate and the required declaration so it deducts at the treaty rate.

NRI Tax answer

How are NRE and NRO accounts taxed in India?

Interest on an NRE account is tax-free in India for NRIs, and the balance is fully repatriable. Interest on an NRO account is taxable in India, with TDS of 30% plus surcharge and cess (or the lower DTAA rate if you give the bank a tax residency certificate), and repatriation from an NRO account is capped at USD 1 million per financial year.

Last reviewed: 2026-10-08•Category: NRI Tax

Detailed answer

What goes where: an NRE account holds money earned abroad; an NRO account holds income earned in India — rent, dividends, pension or property-sale proceeds.

NRO TDS is often higher than the tax actually due; filing an ITR gets the excess back.

Moving NRO money abroad requires the remittance forms — Forms 145 and 146 from 1 April 2026 (formerly 15CA and 15CB).

Source and citation links

NRE vs NRO comparison Reserve Bank of India (FEMA)

FAQ

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