65 Year NRI Turns Resident with Rs 2 Crore Fixed Deposit: Will The FD Interest Be Taxed?



Quick Summary
When a Non-Resident Indian (NRI) turns 65 and becomes a resident in India, their financial situation, particularly regarding fixed deposit interest, changes significantly. Previously tax-exempt NRE fixed deposits become taxable. For instance, a Rs 2 crore fixed deposit earning 7% interest annually would yield Rs 14 lakh, which is now added to your total income and taxed according to your slab. Senior citizens benefit from a basic exemption limit of Rs 3 lakh and a Rs 50,000 deduction on FD interest under Section 80TTB in the old tax regime.

As a 65-year-old NRI transitioning to a resident Indian with a Rs 2 crore fixed deposit, your financial landscape is about to change especially when it comes to taxes. Many returning NRIs are caught off guard when their once tax-free NRE fixed deposits suddenly attract tax under Indian laws. Res
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About the Author

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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