Taxability of interest earned on NRO accout
This query is : Resolved
26 June 2010
Can any body answer the following issues;
1. interest earned on NRO account- is it taxable underthe income tax act.
2.is there any exemption for the interest earned on NRO deposits ?
1. interest earned on NRO account- is it taxable underthe income tax act.
2.is there any exemption for the interest earned on NRO deposits ?
26 June 2010
Exemption is provided for
ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and the rules made thereunder :
Provided that such individual is a person resident outside India as defined in clause (q) of section 282 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account ;]]
i. e. NRE acoount and not NRO.
ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and the rules made thereunder :
Provided that such individual is a person resident outside India as defined in clause (q) of section 282 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account ;]]
i. e. NRE acoount and not NRO.
28 June 2010
Interest on NRO account is taxable. TDS provisions also attracts. There is no exemption for such interest from income tax.
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