Interest on NRE account

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Interest earned on an NRE (Non-Resident External) account is generally not taxable under the Income Tax Act. However, it's important to declare this interest in your tax computation and Income Tax Return (ITR). By claiming an exemption under Section 10(4)(ii), you ensure your ITR is accurate and complete, avoiding potential issues during verification.

Kowsalya

Kowsalya (Querist)

22 November 2021 Is savings bank interest earned on NRE account is taxable? If such interest amount reflected in AIS, whether the same needs to be considered?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 November 2021 No. Interest on NRE account is not taxable under IT act.
That is for information purpose.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

23 November 2021 Should show in tax computation sheet / ITR and claim exemption u/s 10(4)(ii), otherwise verification of ITR ,such as the particulars therein are correct and complete, becomes wrong.

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