You may have to travel abroad for different reasons, but your income sources in India still need attention. These could be in the form of rent, dividends, pensions, interests, etc. You would need a way to manage those funds within the country while you reside overseas.

The sorted way to do that is through (Non-Resident Ordinary) NRO accounts. These are the perfect avenue to manage your earnings in the home country. You get to open them as current or savings account, fixed or recurring deposits, etc. Read on to understand everything you need to know about these accounts.

Features: Following characteristics shed light on what is NRO account:

1. Since its functioning is similar to a resident account, it is liable for a tax deduction of up to 30%.
2. Your interest earned and the principal amount is repatriable up to a specific limit after paying taxes as per the Reserve Bank of India.
3. You are eligible to jointly open the account with a resident Indian on a former or survivor basis giving them access to manage the account with you.
4. The funds from the account are subject to withdrawal only in INR.

Opening: You can either convert your existing resident account into NRO with certain charges levied or open a new one. The new account opening procedure is simple and easy if done online. You need to fill the application form and attest the required documents from a verified notary or Indian embassy for approval.

Eligibility: You can open the account if you have proof of your NRI or Person of Indian Origin status. This generally gets ascertained if your stay exceeds 182 days abroad or is lesser than 365 days for four consecutive years in India. The proof can be in employment details, student status, dependant visa, resident permit abroad, etc.

Documentation: Other than the NRI status proof, you must submit supporting paperwork to complete the account opening procedure. These include two passport-sized photographs, identity proof, passport copy, foreign address proof, money remittance details, etc.

Benefits: Opening NRO accounts is a great way to manage domestic income hassle-free. You can open them with a minimum balance of Rs. 10,000. You can also use them as collateral to get loans for emergencies. Investments in mutual funds, equities, term deposits, etc., is also accessible through direct fund transfer from the account.

You also get attractive interest rates on these accounts in comparison to domestic residents. You can easily finance and maintain your Indian funds with a joint holder.