Can I use a non-resident bank account for loan payments?

livemint.com:

When I convert my ICICI Bank savings account into NRO (non-resident ordinary) and NRE (non-resident external) accounts, what will happen to my existing funds? Will that move into the NRE or NRO account? From which account will my ongoing loan payments be deducted? If it is going to be through NRO account, then do I need to transfer funds from NRE to NRO account every month? Will there be any tax deduction on this? Do I need to do any paperwork with ICICI Bank and my loan provider HDFC Bank?

—Bhupinder Singh

An NRE account can be used to transfer foreign earnings to India in Indian currency. An NRO account can be used as a savings account to manage the income earned in India by an non-resident Indian (NRI) in Indian currency.

Your NRO account can be used for the purpose of ongoing local payments and receipts. There is no tax implication for transfer of funds between the two accounts. In case you need to convert your resident accounts to non-resident accounts, you must approach your bank and fulfil all the necessary compliance requirements.

What are the tax implications for NRIs (non-resident Indians) when selling a piece of land in India?

—Name withheld on request

NRIs who are selling land situated in India have to pay tax on the capital gains. The tax that is payable on the gains depends on whether it’s taxed as short-term capital gain or long-term capital gain.

When the land is sold, after a period of two years from the date it was owned—the gains are treated as long-term capital gains. In case it is held for two years or less, the gains get treated as short-term capital gains. Tax implications for NRIs are also applicable in the case of inheritance.

In case the property has been inherited, remember to consider the