Income tax for returning indian
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 November 2013
DEAR SIR,
I AM A RETURNING INDIAN. I WAS NRI FOR LAST 12 YEARS, SO I KNOW THAT I CAN ENJOY RNOR STATUS FOR COMING 2 YEARS.
WHAT I WANT TO KNOW IS THAT I HAVE 'NRE' FIXED DEPOSIT WHICH WILL MATURE IN 2022.
SO, AFTER ENJOYING MY RNOR STATUS WHAT WILL BE MY TAX LIABILITY FOR INTEREST ON THAT 'NRE' DEPOSIT ?...
IS IT TAXABLE OR NOT TAXABLE UNTILL MATURITY OF DEPOSITS ?.. AS TECHNICALLY I WILL BEOME RESIDENT OF INDIA AFTER 2 YEARS.
HOPING UR QUICK ANSWER.
REGARDS
PRAKASH
I AM A RETURNING INDIAN. I WAS NRI FOR LAST 12 YEARS, SO I KNOW THAT I CAN ENJOY RNOR STATUS FOR COMING 2 YEARS.
WHAT I WANT TO KNOW IS THAT I HAVE 'NRE' FIXED DEPOSIT WHICH WILL MATURE IN 2022.
SO, AFTER ENJOYING MY RNOR STATUS WHAT WILL BE MY TAX LIABILITY FOR INTEREST ON THAT 'NRE' DEPOSIT ?...
IS IT TAXABLE OR NOT TAXABLE UNTILL MATURITY OF DEPOSITS ?.. AS TECHNICALLY I WILL BEOME RESIDENT OF INDIA AFTER 2 YEARS.
HOPING UR QUICK ANSWER.
REGARDS
PRAKASH
21 November 2013
As per RBI:
" NRE accounts should be redesignated as resident rupee accounts or as RFC accounts (if eligible), at the option of the account holder immediately upon the return of the account holder to India if authorised dealer is satisfied that he has returned to India for taking up employment or for carrying on a business or vocation or for any other purpose with the intention of residing in India for an uncertain period."
As per income tax as soon as you lose NRI status, the interest shall become taxable at normal tax rates.
" NRE accounts should be redesignated as resident rupee accounts or as RFC accounts (if eligible), at the option of the account holder immediately upon the return of the account holder to India if authorised dealer is satisfied that he has returned to India for taking up employment or for carrying on a business or vocation or for any other purpose with the intention of residing in India for an uncertain period."
As per income tax as soon as you lose NRI status, the interest shall become taxable at normal tax rates.
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