11 June 2019
Interest earned on NRE Savings Account and NRE Fixed Deposits by an NRI is chargeable to income tax or it is exempted ??? related provisions... please guide me
11 June 2019
As per section 10(4)(ii), in the case of an individual, any income by way of interest on money standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Management Act, 1999, and the rules made thereunder is exempt from tax.
Exemption under section 10(4)(ii) is available only if such individual is a person resident outside India as defined in clause (w) of section 2 of the Foreign Exchange Management Act, 1999 or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account.
12 June 2019
Thank you sir for your reply.... but the said section does not specify the interest earned on NRE Fixed Deposits.... and my doubt is whether the interest earned on NRE Fixed Deposits by an NRI is taxable or not ???? the said section 10(4)(ii) does not specify regarding this....
CAclubindia
