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Which bank account should an NRI use for farm income and land sale money?

GGeeta Subramaniam5mo ago · 171 views

nri nro nre account farm income, which account for agricultural land sale money, nro account rent farm nri

2 Answers

🌾Farmer.in Krishi TeamExpert ✓5mo ago

For income arising in India, such as rent from leasing your land or proceeds from selling inherited agricultural land, the usual account is an NRO (Non Resident Ordinary) account. The NRO account is meant for money earned in India and handles Indian tax cleanly. The NRE (Non Resident External) account is for money you bring in from abroad and is freely repatriable, but Indian source income like farm rent or land sale generally goes through NRO. From the NRO account you can then remit abroad within the yearly limit after completing tax formalities. Keeping farm money in a proper NRO account, rather than in a relative's account or in cash, gives you a clean trail for tax, for repatriation, and for proving the source if questions arise later. Ask your bank to set up the right account type and check the current repatriation steps with a CA. General information, not financial advice.

IInder Mohan4mo ago

I made the mistake of letting my brother collect the farm rent in his account for years. When I wanted to send money abroad I had no clean record of it being my income. Now everything goes into my NRO account. Much cleaner.

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