TDS on interest paid to NRE Deposit


This query is : Resolved 

Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) is applicable on interest paid for Non-Resident External (NRE) deposits held in Indian currency. The consensus is that TDS is not applicable to NRE accounts, even when held in Indian Rupees, distinguishing them from Non-Resident Ordinary (NRO) accounts where TDS may apply.

(Querist)
12 February 2020 Whether TDS is applicable for Interest paid on NRE Deposit held in Indian Currency.

12 February 2020 TDS deducted on NRO account held in Indian currency.
No TDS on NRE foreign currency account.

Rajashekhar (Querist)
12 February 2020 Thank you sir. In our case we are having an NRE account in Indian Currency, Whether TDS is applicable or not sir

12 February 2020 No TDS applicable on NRE account.

13 February 2020 TDS is not applicable on NRE accounts


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