Nre bank account in india

Sir

An individual is holding a NRE Bank A/c in India. He transfers the amount earned from foreign country to this account.From this account he makes FD AND RDs with Bank (HDFC/NATIONALISED BANK etc )in India.Are the interest earned on these FD and RDs taxable? He also earns income from other sources.. Please reply Thank you

Sunil

Replies (5)

YES. Interest eaarned on FD and RD with the bank in India is taxble in the hand of NRI. As the same is the income accruing and arising in India.

Yes is the answer.  The Banks would effect TDS on this income.  If interest income and other income do not exceed the limit of taxable income, the NRI can file return and claim refund.

Sir,

The TDS is not applicable for NRE account interest and NRE SB a/c .bank will not deduct interest for the interest earned from these accounts.only NRO SB and NROFD comes under TDS

In deducting TDS surcharge is also applicable for NRO TDS .

This is practically happening in banks

But I agree with the earlier comments that the interest income is accrued and earned in india

Income Taxable under head of Income from other source 

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