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NRO bank a/c-Filing of income tax returns

TDS 784 views 2 replies

RAVICHANDER V.M.

Senior Executive-Finance

69 Points Joined May 2009

Dear Sir,

My friend who stays in U.S.A wants to know whether he can file taxes from there on line or should he hire someone to do it for him, as he is opening a NRO bank a/c in India,wherein the interest earned on any type of NRO bank a/c in India are taxed ubder the account holder's bracket.

Kindly let me know whether he can file taxes from U.S on line or should he hire someone to do it for him?

Pls.revert.

Regards,

Ravichander

Replies (2)

Ashish Modi

CA FINAL STUDENT

80 Points Joined May 2009

Interest earned on any type of NRO bank account is subjected to tax deducted at source. The assessee must declare interest income on US tax return and file form 1116 to claim foreign tax credit.