Reader's corner: Taxation

What’s the difference between non-resident external (NRE) and non-resident ordinary (NRO)? As a person deputed abroad (non-resident), which account should I open?

As a person deputed abroad, you can open any of the two accounts or even both. You will probably need both as there are different purposes for which these accounts can be used. The primary distinction between NRO and NRE account is the taxability and repatriability.

In NRO accounts, the permissible credits are inward remittances from outside India, legitimate dues in India, current income like rent, dividend, pension, interest, and so on. Similarly, the permissible debits are local disbursements, remittance