FD INTEREST ??

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AMIT (Querist)
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21 July 2010
NRI HAVE A FD OF RS.10 LACS IN INDIA

MY QUERY IS >

A. WILL THE INTEREST INCOME IS EXEMPTED UNDER 10(4) ??

B. IF INTEREST ON FD IS TRANFER TO RESIDENT ? WHAT IS THE TAX TREATMENT ?WILL THERE BE CLUBBING ?

PLEASE ANSWER POINT WISE

Juzer Sadikot

Juzer Sadikot (Expert)
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21 July 2010 Dear Amit,

A. If it is NRE FD, then it is exempted u/s. 10(4). If NRO, its taxable subject to DTAA and at the rate stipulated in DTAA read with section 115E

B. If it the case of transfer of Income w/o transfer of asset then under section 60 it will be clubbed in the hands of Transferor i.e. NRI.

Regards
Juzer

Sunil

Sunil (Expert)
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21 July 2010 B. It also depends on how the transfer is done to the Resident. If the NRI earns income that is first credited to the NRI (exempt or otherwise to which Juzer has given the right reply) and then the NRI remits or issues cheque to Resident, provisions of Section 56 IFOS applies depending on relationship between the NRI and Resident as in any case the NRI has borne the tax if taxable. What would happen in this case is that NRI will be exempt or taxed depending on type of account. Resident will be taxed depending on relationship of his with NRI.

AMIT

AMIT (Querist)
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22 July 2010 thanks very much sirs for point wise answer

i want to know If NRO, its taxable subject to DTAA and at the rate stipulated in DTAA read with section 115E

A. WHAT IS DTAA ?

B. IF THE NOMINEE OF NRI FD IS RESIDENT, THAN WHAT WILL THE TAX TREATMENT ?

Juzer Sadikot

Juzer Sadikot (Expert)
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22 July 2010 Dear Amit

Please reply to following:
1) In which country the concern NRI is residing?
2) Is NRO FD placed from NRE Funds or remittance from outside India?
3) Does NRI has PAN?

It doesnt make any difference if Nominee is resident.

Regards
Juzer

AMIT

AMIT (Querist)
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22 July 2010 1. atlanta, USA

2. remittance from outside india

3.yes

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