Kindly clarify whether interest received on RFC deposit is taxable? If it is taxable, is there any relaxation?
vineet kumar
(Student CA IPC / IPCC)
(85 Points)
Replied 10 June 2015
Yes, Interest on RFC Deposit Taxable Under income tax Act.
In case returning NRI is Resident But Not Ordinary resident of India(RBNOR) (i.e. for a period of 9 years following the year of return) then, Interest income of RFC account is exempt from Tax.
Thanks & Regard
Vineet Kumar
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