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FCNR DEPOSIT INTEREST EARNED REPORTING IN ITR2

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SUDHIR VARDHAN

EX BUSS HEAD IN UNIFIL LEBANON

59 Points Posted on 19 July 2025

HOW TO DISCLOSE THE FCNR INTEREST INCOME IN USD & JPY IN EXEMPT INCOME SCHEDULE. WILL IT BE CONVERTED IN INR AT THE CLOSING CONVERSION RATE AS ON 31ST MAR 2025,IF YES WILL THE CONVERSION RATE BE SOURCED FROM RBI WEBSITE OR ANY OTHER WEBSITE.

OR IS THERE ANY OTHER WAY TO DISCLOSE SUCH INCOME.

PLEASE GUIDE.

Replies (3)

Quick Summary

This discussion addresses how to report interest earned on FCNR deposits, specifically for USD and JPY, within the exempt income schedule of ITR2. It explores the correct method for converting foreign currency interest to INR, considering whether to use the closing conversion rate as of 31st March 2025, and where to source this rate (e.g., RBI website). The consensus leans towards using SBI TT rates or RBI rates for accurate disclosure.