I am in the US on H-1 B. I understand NRE, NRO and FCNR accounts are available to the Non resident Indians. But can't I continue to use my regular Savings Bank Account for sending money to India? Will I be subject to taxes if I do so? Can there be any other implications? Your answers are appreciated.
But can't I continue to use my regular Savings Bank Account for sending money to India?
Yes You Can have the funds transferred directly into savings account. However it’s advisable to open an NRE/NRO account as it’s easier to track funds for tax purposes. i.e. these accounts by nature certify that the funds received into them are from foreign sources and can easily be explained to the tax authorities. However establishing the origin of funds in ordinary savings accounts needs more paper work. Whenever there is a scrutiny by tax authorities on this savings account, it would need more efforts to establish that the credits are from foreign earnings
Will I be subject to taxes if I do so?
As you are NOT a tax resident in India, the income you have earned can be moved to India TAX FREE. However if you are investing the funds into say shares / fixed deposits etc., the income you earn on these funds is taxable in India.