Gifting to your NRI child? Know the tax treatment of NRE deposits

Gifts from parents to NRI children are tax-free under income tax laws.

Interest earned on NRE accounts and deposits is fully exempt from income tax for FEMA non-residents.

Interest on NRO accounts is taxable, unlike NRE interest.

The article clarifies tax treatment differences between NRE and NRO accounts for NRIs.