NRI corner

NRI investing hub

NRE vs NRO, repatriation, LRS vs NRI routes, TCS, and US dividend withholding — each number tied to an official source, reviewed 17 September 2026.

Our verdict

LRS is for residents. NRI money moves under different rules — don't mix the two limits.

NRE vs NRO accounts

Two rupee accounts, different jobs. The tax and repatriation treatment below follows the RBI and Income Tax Department pages linked under Sources.

NRE

Non-Resident External account

Hold eligible overseas earnings in Indian rupees.

Interest: Account interest is exempt from Indian income tax while the exemption conditions are met. This does not make investments bought with NRE money tax-free.
Moving money out: Repatriable principal and interest. Ask your bank to confirm the permitted credits and documentation for your transaction.

NRO

Non-Resident Ordinary account

Manage Indian receipts, such as rent, pension and dividends, in rupees.

Interest: Account interest is taxable in India. Tax withheld by a bank is not necessarily your final liability; treaty relief and your circumstances matter.
Moving money out: Current income can be remitted subject to applicable taxes. Eligible NRI/PIO balances and other eligible assets share a USD 1 million per financial year remittance facility, subject to RBI conditions and bank documentation. It is not an unconditional account withdrawal limit.

LRS vs NRI repatriation

The two limits people confuse most. They belong to different people under different regulations.

LRS — residents only

All resident individuals, including minors, up to USD 250,000 per financial year for permissible transactions.
The limit is cumulative for the financial year; once exhausted, no further LRS remittances that year even if investments return.
Not available to corporates, partnership firms, HUFs or trusts.

NRI repatriation — FEMA route

NRE principal and interest are repatriable; confirm permitted credits with your bank.
NRO current income (rent, pension, dividends) is remittable subject to applicable taxes.
Eligible NRI/PIO balances plus other eligible assets share a USD 1 million per financial year facility under the Remittance of Assets Regulations — a conditional facility, not an account withdrawal cap.

TCS on foreign remittances

A cash-flow cost on the resident route — and the reason the calculator below keeps TCS out of withholding.

Remittances under LRS above Rs 10 lakh for non-education, non-medical purposes attract 20% TCS, effective 1 April 2026 (Income-tax Act 2025, s. 394).
TCS is collected on the amount above the threshold and is adjustable against your income-tax liability — credit is allowed once the collector deposits it and files the TCS statement.
Planning a large resident remittance? Model the stacked cost first in our US investing cost estimator.

US dividend withholding estimator

Ordinary US corporate dividends only. Pick the basis, enter gross dividends, see withheld vs net — FTC, Indian tax and TCS deliberately excluded.

Gross annual dividend (USD)

Withholding basis

Standard 30%Default for a non-US person with no treaty claim (W-8BEN).India treaty 25%India–US treaty rate for treaty-resident Indian investors (Article 10(2)(b)).Other treaty / customEnter a rate yourself — verify it with your broker before relying on it.

Ordinary US corporate dividends only — excludes REIT distributions, partnership/MLP income and effectively-connected income (ECI), which are taxed differently.

Caution: Indian citizenship or NRI status alone does not make you eligible for the 25% rate — only treaty residence with a valid claim (and a W-8BEN on file) does. US persons are out of scope here: they file W-9, not W-8BEN. 25% per India–US treaty Article 10(2)(b) (PDF); 30% standard rate and treaty-residence vs citizenship rules per IRS Instructions for Form W-8BEN. Verified 16 Sep 2026.

Gross dividend$1,000.00
Withheld (30%)−$300.00
Net received$700.00

Excludes foreign tax credit (FTC), Indian income tax on the dividend, and TCS on remittances — none are deducted automatically here. A withholding estimate is not tax advice; verify the rate with your broker or the payer.

Prefer the standalone version? Open the withholding estimator

Investing from India as a resident? Read the US investing routes

Frequently asked

Can NRIs use the Liberalised Remittance Scheme (LRS)?

No. RBI states LRS is for resident individuals only, up to USD 250,000 per financial year. NRI repatriation follows separate FEMA rules, including the USD 1 million per financial year facility for eligible NRI/PIO balances and other eligible assets, subject to conditions and bank documentation.

Is NRE account interest tax-free?

Interest on NRE account balances is exempt from Indian income tax under section 10(4)(ii) while the exemption conditions are met. NRO account interest is taxable in India. The exemption covers account interest, not investments bought with the money.

What US dividend withholding applies to Indian investors?

The standard US withholding on dividends paid to non-US persons is 30%. Eligible treaty-resident Indian investors can claim 25% under India–US treaty Article 10(2)(b) with a valid claim and W-8BEN on file. Citizenship or NRI status alone does not qualify; treaty residence does. US persons file W-9, not W-8BEN.

Is TCS a tax or can I get it back?

TCS collected on LRS remittances above Rs 10 lakh (20% for non-education, non-medical purposes from 1 April 2026) is adjustable: the Income Tax Department allows credit to the person from whom it is collected, provided the collector deposits it and files the TCS statement. It is a cash-flow cost, not necessarily a final tax.

Sources

Every rate and limit above was verified against these official pages on 17 September 2026.

Educational content, not personalised advice. Residency, treaty eligibility and FEMA permissions depend on your facts — confirm with your bank or a chartered accountant before moving money.