Interest earned

This query is : Resolved

VANGARI GANGA RAJAM (Querist)
Follow

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

thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

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.

Message likes : 1 times

VANGARI GANGA RAJAM

VANGARI GANGA RAJAM (Querist)
Follow

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....