With reference to Non-Resident Indian (NRI) Deposits in India, consider the following statements: 1. Non-Resident External (NRE) accounts can only be held jointly with another NRI, while Non-Resident Ordinary (NRO) accounts allow joint holding with resident Indians. 2. As per Budget 2025-26, the Tax Collected at Source (TCS) on remittances under the Liberalised Remittance Scheme (LRS) has been relaxed for NRIs, reducing the rate on education and medical expenses. Which of the statements given above is/are correct? |ForumIAS

Q. With reference to Non-Resident Indian (NRI) Deposits in India, consider the following statements:
1.Non-Resident External (NRE) accounts can only be held jointly with another NRI, while Non-Resident Ordinary (NRO) accounts allow joint holding with resident Indians.
2.As per Budget 2025-26, the Tax Collected at Source (TCS) on remittances under the Liberalised Remittance Scheme (LRS) has been relaxed for NRIs, reducing the rate on education and medical expenses.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Notes:

Explanation:

Statement 1: Correct. NRE accounts are for foreign earnings and are repatriable, joint only with NRIs; NRO for Indian income, non-repatriable principal, joint with residents.

Statement 2: Correct. The 2025-26 Budget eased TCS rules, lowering rates for specific overseas remittances to benefit NRIs.

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS