Skip to content
SmartFigure

Money for NRIs

Living abroad changes how your money in India is held and taxed. These pages cover the questions NRIs ask most: where to keep savings, what India taxes, how many days you can spend here, and what you get when you send money home.

ShareWhatsApp

NRI guides and tools

NRE, NRO & FCNR ratesDeposit rates at nine banks, from their own rate cards.NRI FD calculatorNRE against NRO, after tax, year by year.NRI tax guideWhat is taxed in India, TDS rates and when to file.Residential statusThe 182-day and 120-day tests, RNOR and deemed residents.DTAA ratesTreaty rates on interest and dividends for 12 countries.Sending money to IndiaToday’s rupee rate for 11 currencies, and what it costs to send.

Three accounts, three jobs

  • NRE: rupee account for money earned abroad. Interest is tax-free in India and the whole balance can go back abroad.
  • NRO: rupee account for income from India, such as rent, dividends and pension. Interest is taxed at 31.2% (or the treaty rate), and up to US$1 million a year can be sent abroad.
  • FCNR(B): a fixed deposit in a foreign currency, such as US dollars. Tax-free in India and free of rupee risk, at a lower rate.

Rates at 9 banks, from their own rate cards, are on the deposit rates page. Compare NRE and NRO after tax with the NRI FD calculator.

Tax in brief

  • India taxes an NRI only on Indian income. Salary earned abroad and NRE and FCNR interest are not taxed here.
  • Most Indian income is taxed at source, from the first rupee: 30% on NRO interest and rent, 20% on dividends, plus cess.
  • There is no rebate for NRIs, so tax starts above ₹4 lakh in the new regime.
  • A tax treaty can cut tax on interest to 10% to 15%; India has treaties with all 12 countries in our DTAA table.
  • From 1 April 2026, the Income-tax Act, 2025 applies. Rates are unchanged, but Form 10F is now Form 41 and Forms 15CA and 15CB are now Forms 145 and 146.

Details on the income tax for NRIs and residential status pages.

A checklist for the year you move abroad

  1. Tell your bank you have become a non-resident, and have your savings account changed to an NRO account.
  2. Open an NRE account for money you will send from abroad.
  3. Update your residential status with your fund houses, demat account and insurers.
  4. Keep a count of days spent in India each tax year, with passport stamps as proof.
  5. Get a tax residency certificate in your new country, and file Form 41, if you will earn interest or dividends in India.
  6. File an Indian return for any year with Indian income above the limit, or with TDS to claim back.

Sending money home

The rupee rate for the dollar, dirham, pound, riyal and seven more currencies, with what a bank's margin costs you, is on sending money to India. Money you send to your own account is not taxed in India.

Frequently asked questions

Who counts as an NRI?

For bank accounts, someone who has left India to work, do business or live abroad for an uncertain period (FEMA). For income tax, someone who spends less than 182 days in India in a tax year, with a 120-day test for those with Indian income above ₹15 lakh. The two can differ in the year you move.

Can I keep my resident savings account after moving abroad?

No. Once you become a non-resident under FEMA, your resident savings account must be changed to an NRO account. Money you earn abroad then goes into an NRE account.

Which deposit pays NRIs the most?

Among the 9 banks we track, IDFC FIRST Bank pays the most on NRE deposits: 7.10%. NRE interest is tax-free in India, so it beats an NRO deposit at the same rate by the full tax.

Can NRIs invest in mutual funds and PPF?

NRIs can invest in Indian mutual funds through NRE or NRO accounts, though many fund houses do not accept investors living in the US or Canada. An NRI cannot open a new PPF account; one opened while resident can run to maturity.

Sources

Last checked on 13 October 2026. General information, not tax or investment advice. Rates and rules change; each page says when it was last checked.