NRI TAX RATE.as applicable on NRO Saving Bank a/c & FD interest

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies tax implications for Non-Resident Indians (NRIs) on interest earned from NRO savings accounts and Fixed Deposits. It confirms that such interest is taxed at slab rates, and NRIs can claim a refund of TDS if their total Indian income falls below the taxable limit by filing ITR-2. The advice also suggests declaring self-occupied property, even if vacant, in the House Property Income schedule.

rmalhotra

rmalhotra (Querist)
Follow

25 July 2025 Sir,

AS NRI an Individual has earned interest income of Rs 240000 on his NRO-Saving Banik a/c and NRO-FDs during FY2024-25 (AY2025_26 ) i.e current assessment year. Bank has already deducted TDS @30% under Section 195 of ITax . He has no other income in India.
Now following query -

1. Is this interest income is to be taxed at slab rates OR is to be taxed at Any Specific Special Rates ( if applicable).

2.Will he be entitled to refund of total TDS by filing ITR-2 ( as his India Income is well below Taxable Limit )

3. He is having a residential flat in India and which is self-occupied (Not Rented and No rental income ). Will he still be required to fill-up House Property Income Schedule OR can he skip filling this HP Income schedule as there is income under HP head.

Pls clarify pointwise and help to remove any doubt.