banner_ad

Income tax on interest earned on nre account if its is repatriated to australia

Tax queries 440 views 1 replies

I am NRI living in Australia. I have an NRE account in India. I know that the interest earned on NRE account is tax free. Also, I know that NRE account is fully repartiable.

Lets say I deposit $10,000 to my NRE account (which will be converted to INR) and over a period of time I earn $2000 (equivalent in INR) in interests.

My questions:

1. If I bring all the money (principle+interest) to Australia, do I need to pay tax on $2000 that I earned as interest in India? My guess is, it will be treated as my income and will be taxed accordingly.

2. What if I just bring my principle amount back. My understanding is, this should not be taxed as I already paid tax on this when I earned this in Australia.

Need comments on Tax Gurus here :) 

Happy to clarify anything if I have not made myself clear here.

Cheers!

Replies (1)

For an NRI, interest earned on NRE deposits is exempt from tax in India. So long as you continue to be an NRI or a resident but not ordinarily resident – the tax exemption will continue to apply for these deposits held by you.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details