Special foreign currency account
This query is : Resolved
09 July 2019
Many Banks, as per permissible guidelines offer FCNR accounts along with a forward contract for purchase of maturity amount at a specified [mostly higher rate of exchange against today market rate]. This makes FCNR deposit risk free and with some assured higher return.
Question here is
a) My understanding is such FCNR account get redesignated to RFC account when the NRI becomes resident. Is it correct?
b) Does the benefit derived from FEX forward contract taxable? If so, how is it taxed [rate, term etc, if capital gain]`
Thanks for your support and clarification
Question here is
a) My understanding is such FCNR account get redesignated to RFC account when the NRI becomes resident. Is it correct?
b) Does the benefit derived from FEX forward contract taxable? If so, how is it taxed [rate, term etc, if capital gain]`
Thanks for your support and clarification
09 July 2019
a The returning NRIs and PIOs have the option to transfer the balance held in their NRE or FCNR (B) accounts to an RFC account.
b Taxable.
b Taxable.
09 July 2019
sir,
thanks for the update. I understand my first query is answered and FCNR is converted to RFC.
But, what is the current tax and what component the tax is levied for the Forward Contract. Thanks
thanks for the update. I understand my first query is answered and FCNR is converted to RFC.
But, what is the current tax and what component the tax is levied for the Forward Contract. Thanks
10 July 2019
It will be taxed at applicable slab rates.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
