NRE vs NRO Account

Key difference of NRE (Non Resident External Rupee acocunt) and NRO (Non Residents Ordinary Account )maintained with banks is:

	NRE Account		NRO Account
	Can be credited with foreign currency earnings from overseas.		Can be credited with foreign currency earnings from overseas and INR earnings in India.
	Account maintained in Indian Rupees.		Account maintained in Indian Rupees.
	Withdrawals in Indian Rupees and Foreign Currency.		Withdrawals in Indian Rupees only.
	4% p.a. Interest Rate.		4% p.a. Interest Rate.
	Exempt from tax in India.		30% tax deducted at source on interest earned.
	Principal: Freely repatriable. Interest earned: Freely repatriable.		Principal: Not repatriable. Interest earned: Repatriable after tax deduction. Repatriation of up to $ 1 million per financial year, as per RBI provisions.
	Joint A/C holder has to be an NRI.		Joint A/C holder may be a Resident Indian or an NRI.
	Family member resident in India can be authorized to operate the account. ATM Card for both NRI and Mandate holder.		Family member resident in India can be authorized to operate the account. ATM Card for both NRI and Mandate holder.
	Allows NRIs easy flexibility of transferring funds from overseas into India and then transferring them back from India to abroad with ease.		Allows an NRI to manage income earned in India. (Local income like Rent, Property Sale, Inheritance, etc.).

NRI's file your income tax return with http://www.incomtaxreturnindia.in/