Nri having fd interest

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adhithi (Querist)
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17 June 2016 My friend is a NRI(Indian citizen) working in abudhabi .he has FD's in Indian banks.Is he taxable on interest income on accrual basis.Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 June 2016 Yes interest income is taxable on accrual basis.

adhithi

adhithi (Querist)
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19 June 2016 Is he eligible for basic exemption of 2,50000 and whether VI A deduction relating it LIP apply to him

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 June 2016 Yes he is eligible for basic exemption of 2,50,000. VI A deductions not available.

adhithi

adhithi (Querist)
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21 June 2016 Thank u,sir.If a NRI can hold FD s in all Indian banks and can avail basic exemption,then what is the need for having an NRO a/c FD.can u please explain