Interest from nre fd a/cs

NRE FD interest is not taxable for NRI

under section 10(4)(ii) of income tax act

but residential status is to be determined as per FEMA act

"person resident in India" means—(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include—(A) a person who has gone out of India or who stays outside India, in either case—(a) for or on taking up employment outside India, or(b) for carrying on outside India a business or vocation outside India, or(c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;(B) a person who has come to or stays in India, in either case, otherwise than—(a) for or on taking up employment in India, or(b) for carrying on in India a business or vocation in India, or(c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;(ii) any person or body corporate registered or incorporated in India,(iii) an office, branch or agency in India owned or controlled by a person resident outside India,(iv) an office, branch or agency outside India owned or controlled by a person resident in India;

Thanks

 

But my query is

Yes, NRE FDs are tax free till maturity

Thanks ..Chamarthi

Plz provide me relevant sections/ provision etc.........which will help for proper submission before I Tax Deptt.