Int on nri deposits

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This query is : Resolved

Nailesh Kothari (Querist)

26 July 2012 Some banks like Standard Chartered Banks are advertising, "TAX Free" NRI Deposits??
Can some pl tell me whether any such exemption to NRI's is given on ineterest earned on fix deposit??

Amol S Joglekar

Amol S Joglekar (Expert)

26 July 2012 The non resident as per Indian Income TAX, interest on NRE a/c is exempt.

Arihanth Jain

Arihanth Jain (Expert)

02 August 2012 Non resident Indians (NRI) can maintain a special account called NRE. Any interest received for funds in NRE account is not liable to tax/tds in India. This is more like an external account which also has free repatriation advantages i.e., funds can be moved out of India without any major formalities.

Alternatively an NRI can maintain a NRO account in India, which is more like an local-savings account. The interet income earned on this account shall be liable to tds @ 30% normally. Further repatriation is restricted.

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