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

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)
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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.