how NRE account is different from normal account?

Question

indian citizen, working out side india and for that work, recieving salary in NRE acc in india. is he liable to pay income tax in india? what if he recieves salary in normal saving account ?

Answer 1

NRE a/c: All deposits to this a/c must be in foreign currency. Amount deposited in this a/c will be converted to Indian rupees (INR) at the time of credit at market rate. You can withdraw Indian rupees from this account in India. If you want to take back the balance amount to any other country, it is allowed. At that time again the INR will be converted to (say) US$ at the market rate on that day.

NRO (Non resident ordinary A/c): This is like any other Indian a/c. In this you can deposit either US$ or INR. All withdrayals will be in INR only. You cannot convert the balance in it to any other currency other than INR.

I am not a C.A. But if he is working outside India and if the salary is deposited in NRE A/c, I think that income is not taxable in India. If the employer dose not deduct tax in India, that means you need not have to pay tax in India but you have to pay at the working country. Your employer can tell you where to pay tax.

Depositing in NRE or NRO a/c dose not make any diffarence for the purpose of tax. No double taxation. You have to pay tax at one place.

Answer 2

Don't know, don't care. I know my taxes pay for you to work and live here and you should be paying taxes here if you live and work here. Why I should pay anything for you and your family and you not pay is not right or fair and I resent it very much, I don't know what you are talking about but I bet it takes from the US citizen and gives to you and your family . Where do I get mine from? Can you tell me that? No, because you get yours and that's what you are concerned with and don't wonder why we have feelings of resentment when we know you don't pay taxes like we do?