Money transfer rules from NRO to NRE account

An NRI can transfer unlimited amounts of money from an NRO account to an NRE account in a year after paying applicable taxes. The NRO account is used to manage income earned in India, while the NRE account is for transferring foreign earnings to India. The main differences between the two accounts are the taxation of interest income and the repatriation of funds.

NRO account interest income is tax-deductible, while NRE account interest income is tax-free. Additionally, funds in an NRE account can be fully repatriated abroad, while funds in an NRO account are partially repatriable, subject to payment of taxes in some cases. To transfer money from an NRO to an NRE account, NRIs need to meet certain tax requirements and keep relevant documents ready, such as Form 145 and Form 146.

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