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Foreign Taxation

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Iqbal Singh Grover (Querist)

27 March 2011 Is the money held in the NRE account treated as foreign exchange ?
And will the Bank FDs bought from the money in NRE account be treated as specified asset for the purpose of Section 115E ?

You may reply to this on iqbalsrcc@gmail.com..

Regards
Iqbal

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

29 March 2011 If the funds were brought in foreign exchange in NRE account then the same shall be treated as specified asset for the purpose of Section 115E.

Also the NRI has to express his intention in terms of section 115H at the time of filing his return of income to avail the benefit of sec. 115E

Message likes : 1 times

Iqbal Singh Grover

Iqbal Singh Grover (Querist)

29 March 2011 Sir, the funds were indeed brought in foreign exchange into the NRE account..

The assessee had filed the return in July 2010 (for AY 2010-11) under the normal provisions.. So now it should be revised by using 115E..

Given the assessee's investment income, section 115E is more beneficial than the normal provisions..

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