Are there tax deductions while converting an existing SB a/c to a NRO a/c & also when remitting funds from the NRO a/c?

1 Answer 1


No there are no deductions when converting from an SB a/c to an NRO a/c. However, the bank may charge you a small fee to transfer your funds (Somewhere between 100-500 Rupees). The interest you earn on that NRO account will be deducted at source as compared to your S/B(30.9% p.a). In case you fall within basic exemption limit, you can claim it back at the end of the year, while filing your taxes.

You can remit upto $1 million from your NRO account every year. There are no taxes while you remit the money. However, you will need to fill out form 15CA and 15CB which ensures that the taxes have been collected before the money is remitted out of the country.

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