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
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to
CCI PRO
for unlimited access
Why Upgrade to
CCI PRO?
-
No Ads
-
WhatsApp Community
-
Daily E-Newsletter
-
Unlimited Articles Access
-
Profile Visitors
-
Link Social Profiles
-
Featured Job Posts
-
Pro Badge
-
Expert GST Guidance
-
Unlimited Forum Replies
-
Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member?
Login here
for an ad-free experience.