I am NRI staying in USA and I am planning to take a Home loan in India.To process the loan, I am being asked to open NRE and NRO accounts. I know few details about these accounts.
NRE - Deposit only in Foreign currency ($); No Tax has to be paid for interest earned.
NRO - Both local and foreign currency deposits allowed. Tax has to be paid for interest earned.
I have a serious doubt in money transfer from NRE to NRO. Is it possible to move money from NRE to NRO account. I would like to move USD earning to NRE and further move money in NRE to NRO account as I am planning to give NRO account to HDFC Home loan for EMI processing.
I chose NRO because if I move back to India, I don't have to change the account details for EMI processing and also I can deposit money from other savings account to NRO; Don't have to depend on USD earnings.
Please share me your ideas and throw light on this.
Thanks a lot !