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Amrita sharma (Financial Advisor) 10 October 2019
According to Income Tax rules, the TDS rate on fixed deposit interest rate is 20% if you do not provide your PAN Card to the bank. Senior Citizens (those above 60) can get up to Rs 50,000 per year in FD interest tax-free and no TDS will be deducted for interest received up to Rs 50,000 per annum for them.
Suresh Thiyagarajan (Student) 10 October 2019
1. According to sec 195 TDS will be deducted @ 30% in case of interest from FD to be payable to a non-resident. Because this income is accrued or arises in India and hence it is taxable in India.
2. It is important to note here that there are two kinds of accounts with respect to Non-resident. NRE and NRO account. Both accounts can be maintained by NRI.
3. NRE account denotes foreign income and this will not be taxable in India. NRO account represents income earned in India and this will be subject to tax.
4. If you have utilized your salary income to invest in FD, then the resultant interest income will be taxable in India and TDS u/s 195 @ 30% will be deducted on the same.
5. This person can file return and claim TDS as refund provided his Indian income is below basic exemption limit. Before that PAN needs to be applied.
Please correct me if the above solution has an alternative view.