Archive · 20 Sep 2026
NRO to NRE Transfers: Annual Limits, Taxes and Requirements
NRIs can use two common types of Indian bank accounts called NRO and NRE accounts.
An NRO account generally holds money earned in India, such as rent, dividends, or pension.
An NRE account is mainly used for money earned outside India.
Eligible money can be moved from an NRO account to an NRE account.
NRO funds have a repatriation limit of $1 million per financial year.
Taxes may need to be paid before the money is transferred.
NRE funds can generally be sent abroad without an annual repatriation limit.
Banks may ask for tax documents showing where the money came from and whether taxes were paid.
NRIs may transfer eligible funds from an NRO account to an NRE account.
NRO account balances are partially repatriable up to $1 million per financial year, subject to applicable taxes.
NRE account balances are fully repatriable, with no annual limit for transferring funds overseas.
NRE interest is described as tax-free in India for eligible NRIs, and banks do not deduct TDS.
Transfers may require Form 145, a tax declaration, and Form 146, a Chartered Accountant’s certificate.
- Who
- Non-resident Indians managing money in Indian bank accounts.
- What
- The rules, annual limit, benefits, and documentation for moving funds from NRO accounts to NRE accounts.
- When
- The NRO repatriation limit applies per financial year.
- Where
- Between NRO and NRE accounts held with banks in India, with possible transfers overseas.
- Why
- NRIs may move eligible funds to obtain NRE account benefits, including full repatriability, tax-free interest in India for eligible account holders, and no TDS deduction.
- NRO repatriation limit
- Up to $1 million per financial year, subject to applicable taxes.
- NRE repatriation
- NRE balances are fully repatriable, with no annual limit stated for transfers from India to a foreign bank.
- NRE interest rate
- Up to 4% per annum for end-of-day balances of ₹50 lakh or more; 3.5% for balances below ₹50 lakh, according to an HDFC Bank blog post.
- Indian tax treatment
- NRE interest is fully exempt from tax in India while the account holder qualifies as an NRI.
- TDS
- Banks do not deduct TDS from NRE accounts, according to the article.
- Possible documentation
- Form 145 may declare that applicable taxes were paid, while Form 146 is a Chartered Accountant’s certificate on the remittance and tax calculation.