SUNIL (INDIVIDUAL) (84 Points)
11 August 2016Sir
An individual is holding a NRE Bank A/c in India. He transfers the amount earned from foreign country to this account.From this account he makes FD AND RDs with Bank (HDFC/NATIONALISED BANK etc )in India.Are the interest earned on these FD and RDs taxable? He also earns income from other sources.. Please reply Thank you
Sunil
suresh
(proprietor)
(425 Points)
Replied 11 August 2016
YES. Interest eaarned on FD and RD with the bank in India is taxble in the hand of NRI. As the same is the income accruing and arising in India.
Jagga Rao Malipeddi
(Retired)
(183 Points)
Replied 12 August 2016
Yes is the answer. The Banks would effect TDS on this income. If interest income and other income do not exceed the limit of taxable income, the NRI can file return and claim refund.
Unnikrishnan B
(Branch Manager)
(740 Points)
Replied 13 August 2016
Sir,
The TDS is not applicable for NRE account interest and NRE SB a/c .bank will not deduct interest for the interest earned from these accounts.only NRO SB and NROFD comes under TDS
In deducting TDS surcharge is also applicable for NRO TDS .
This is practically happening in banks
Unnikrishnan B
(Branch Manager)
(740 Points)
Replied 13 August 2016
Digambar Singh
(Accountant )
(118 Points)
Replied 13 August 2016
Income Taxable under head of Income from other source
CAclubindia
