Taxability of credit in canara bank ET & T section (NRO)

Save Share

This query is : Resolved

P.Madhivadhanan (Querist)

23 July 2026 An assessee who is an NRI and he is having account in canara Bank savings a/c . No TDS deducted for his sb interest amount. The sb interest is shown seperately in AIS. But in there is a credit in 26AS and AIS as payment received by non residents and TDS deducted for such amount. During the year his father and mother transfered amount to the assessee as gift from canara Bank during the year for which bank charges was debited in their account and amount credited in assessee's SBI nro ac. I want to know nature of such credit and whether it is shown as interest or income in Income statement of assessee. TDS is deducted under section 195 as shown in 26AS.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

24 July 2026 A monetary gift received from parents is completely tax-free under Section 56(2) and does not constitute taxable income. The TDS deducted under Section 195 by the bank is erroneous for a capital gift receipt; you should submit a gift deed to the bank, omit the amount from taxable income calculations, and claim a full refund of the TDS by filing your ITR.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now