RNOR TAXATION

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This discussion addresses the tax implications for an individual who returned to India after 12 years and is now a Resident but Not Ordinarily Resident (RNOR). The key concern is the tax treatment of interest earned on NRE Fixed Deposits (FDs) that mature during their RNOR period. While interest on NRE FDs is generally not taxed for RNORs, the discussion touches upon the taxability of interest accrued during periods spent outside India and for FDs converted from NRE to resident accounts.

Chirag H. Thakkar

Chirag H. Thakkar (Querist)

28 November 2020 An assessee was out of india since last 12 years. Came to india in March 2020. Got a job here in india and now settled in India.
He made NRE FDs in 2018 which will be matured in 2021-22 & 2022-23.
What will be the tax treatment for the interest received on maturity.

Please share the applicable sections.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

29 November 2020 Refer section 6.
Indian income will be taxable under head income from other sources.

Chirag H. Thakkar

Chirag H. Thakkar (Querist)

29 November 2020 Sir interest received covers both NRE fd & then converted FDs.
Interest for the period when he was outside India will also be taxable??