Exemption from Income tax will not be available to resident donee or those residents who being joint holder become owner of the deposit as survivor. However, NRNR accounts can be opened jointly with residents. Operation of account by PA holder allowed for local disbursement and permitted investments. Accounts NRO account is maintained in rupees. Funds are not repatriable.
Interest earned is subject to Indian income tax which is deducted at source.
Interest earned is repatriable fully from 1996 onwards. Accounts can be held jointly with resident Indian.