How to get tax exemption for domestic deposits for nri

 


Querist : Anonymous (Querist) 11 January 2013

Hi,

I am a NRI. I don't have any income (or income through properties)in India. I would like to deposit Rs. 22,00,000 as Domestic Deposit. Commonly TDS will be deducted @ 10% (if PAN is submitted) on the FD interest. I want to avoid this TDS and I found below things from the web :

1. FORM 15G : Since, I don't have any income in India. can I Submit this form to avoid TDS and AM I eligible?
Ex :
Principal : Rs 20,00,000
Interest : 8.00%
Interest Paid on maturity : 1,60,000 (which is less than income limit of Rs 1,80,000)


2. Tax Exemption Certificate

I read few article that I can get Tax Exemtion Certificate for certain period which can be used to avoid TDS. Is it correct ? How can I apply for it ? Whats te process ?

Please suggest me on this.

Thanks for your help in Advance.


@VaibhavJ (Expert)
11 January 2013

Hey Hi,

If you open NRE A/c no interest will be taxable.

Please refer article:

http://www.caclubindia.com/forum/closer-look-to-nre-nro-a-c-taxability-231692.asp


Thanks!!


Querist : Anonymous (Querist) 11 January 2013

@Vaibhav - Thanks for the reply. I already have NRE accunt and having term deposits on NRE(for which FD interests are not taxable).

But I have some amount on my savings account which I need to go for Domestic Deposit (Not NRO/NRE). I would like to know how to avoid TDS.

1. can I submit FORM 15G ?
2. Do I need to apply for Tax Exemption certificate ?
3. Anythng else I can do ?



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