INTEREST EARNING IN USD AND JPY FCNR REPORTING IN ITR2

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AS A NRI, I AM EARNING INTEREST ON USD AND JPY FCNR DEPOSITS , HOW TO SHOW IN ITR2 IN EXEMPT INCOME. SHOULD I CONVERT THE INTEREST AMOUNT IN INR AT THE CLOSING RBI RATES AS ON 31ST MAR 2025.

PLS GUIDE

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FSNR deposits are a type of NRE (Non-Resident External) account, and the interest earned on them is exempt from Indian income tax under Section 10(4)(ii) of the Income - tax Act, 1961.

As per the Income-tax Rules, NRIs are required to report their exempt income in the ITR form, but it is not sbject to tax.

To report the interest earned on FCNR deposits in ITR2, the individual should convert the interest amount to INR using the average annual exchange rate or the exchange rate on the date of receipt, as per the RBI guidelines.

2.Report the interest income in the "Exempt Income" section of the ITR2 form. 

3.Ensure that the interest income is not included in the total taxable income.

Thank you sir for the clarification on disclosure of FCNR interest in ITR

I need a clarification on FA (foreign assets) transactions to disclose the information on dividend* received on stock investment as well its opening and closing period values in ITR 2 for not ordinary resident and resident  status citizens 

* TDS is made at USA

Thanks 

Madhavan R


CCI Pro

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