What is RFC and EEFC account?

Members are kindly aware that any individual residing in India is permitted to open Exchange Earners Foreign Currency (EEFC) account and Resident Foreign Currency (RFC) account. EEFC is an account maintained in foreign currency with an Authorised Dealer i.e. a bank dealing in foreign exchange.

What is the benefit of Fcnr?

High liquidity: The deposit amount and the interest earned in this account are fully and freely repatriable. Tax-free: Interest earned on FCNR (B) account is exempted from income tax in India. Fixed interest rates: The interest rate remains unchanged throughout the tenure of the deposit.

What is the purpose of EEFC account?

Ans. Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange.

Is RFC account taxable?

Interest income earned from your RFC account shall be exempt from tax till you hold Non-resident Indian status or Resident and Not Ordinarily Resident (RNOR) status as per the provisions of Income Tax Act, 1961. Once your tax status changes to the ordinary resident, interest from an RFC account would be taxable.

What are the features of RFC accounts?

What are the features of an RFC Account?

• Photocopy of the pages containing passport details and personal details of all applicants.
• Copy of Permanent Account Number (PAN) / Form 60 (in absence of PAN)
• Copy of valid visa and immigration stamps showing evidence of foreign stay for at least 1 year.

What is NRO account and its types?

NRO (Non-Resident Ordinary Account) An NRO account is also an Indian rupee-denominated account and is available as a savings account and a fixed deposit. However, while an NRE account is used to keep money earned overseas, an NRO account is for managing the income you earn in India.