I wanted to know if it is advisable to transfer money from USA based accounts to an NRE or NRO account in India? Are any of them liable to tax in India or USA ? I am planning to use western union.

Also, if my company in USA wants to send me money to India (payment against Indian invoice in USD), can they do the wire to my NRE/NRO account. should thy use NRE or NRO ?

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    Where have you been living since April 1, 2014? in the US or in India? What is your country of citizenship? Feb 16, 2015 at 21:15

2 Answers 2


Are any of them liable to tax in India or USA ?

Taxability does not depend on whether you transfer the funds or not. It depends on your tax status. If you are deemed NRI [Non Resident Indian] you are not liable for tax in India. Else you are liable for tax.

payment against Indian invoice in USD

Credits into NRE/NRO account are allowed from outside India provided your status is NRI.
In your case it looks like for services done in India, hence it cannot be credited into NRE/NRO account, but regular savings account. It would also be taxable in India


You can use Xoom.com, which is a fast service to send money to India. This service is free if you are sending above $999. There are other services too, like Transfast, money2india, etc.

But make sure you obey the US/India tax laws.

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