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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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Yes, NRE FDs lose their tax-exempt status once an individual becomes a resident in India.
For senior citizens, the TDS threshold for FD interest is Rs 50,000. Additionally, under the old tax regime, Section 80TTB allows a deduction of up to Rs 50,000 on interest income from FDs and savings accounts.
If your only income sources are interest and pension, you can use ITR-1. However, if you have any foreign income or assets, you should use ITR-2.
As a resident Indian, any income earned abroad becomes taxable in India, unless it is covered under a Double Taxation Avoidance Agreement (DTAA).
Yes, banks will deduct Tax Deducted at Source (TDS) at 10% if your annual FD interest exceeds Rs 40,000, or Rs 50,000 for senior citizens.
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