International Tax
NRO Account (Non-Resident Ordinary)
Bank account for NRIs to manage India-source income — interest is taxable, repatriation is capped.
Full Definition
An NRO (Non-Resident Ordinary) account holds India-source income (rent, dividends, pension, property sale proceeds). Key features: interest is taxable at 30% (TDS deducted at source by bank); repatriation of funds is capped at USD 1 million per year after payment of taxes and with CA-certified Form 15CA/CB; can be jointly held with resident Indian relative. All resident bank accounts must be converted to NRO when a person becomes an NRI.
More International Tax terms
NRI (Non-Resident Indian)
An Indian citizen residing outside India for more than 182 days in a financial year.
RNOR (Resident But Not Ordinarily Resident)
A transitional residency status for individuals who have recently returned to India after being NRIs.
DTAA (Double Taxation Avoidance Agreement)
Bilateral treaty between India and another country preventing the same income from being taxed twice.
FEMA (Foreign Exchange Management Act)
Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.