NRO Interest - Taxed at source and in Foreign Country

 Let me break down the tax implications and potential alternatives for you:

 Current Situation: - TDS of 30% in India on interest income from NRO FD - Taxed in UK at 40% (with only 15% claimable as tax relief under DTAA) DTAA Provisions: - India-UK DTAA allows for tax credit in the UK for taxes paid in India -

However, the UK taxes the interest income again, despite India already taxing it Alternatives to generate interest income in India and have it only taxed in India: - NRE FD: Tax-free interest income in India, but may be taxed in the UK - FCNR FD: Tax-free interest income in India, and interest earned is exempt from tax in the UK under DTAA - Indian bonds and debt mutual funds: Taxed in India, but may be eligible for tax benefits under Section 80C Alternatives to NRO FD: - NRE FD - FCNR FD - Indian bonds and debt mutual funds - Consider consulting a tax professional to explore other options Please note that tax laws and DTAA provisions are subject to change.

 It's essential to consult a tax professional to ensure accurate advice and compliance with current regulations.

Thank you sir.

However income from FCNR Fixed deposits are taxable in UK. (https://g.co/gemini/share/5054529d7ed7)

I am looking for a fixed income product that is exempt from tax in UK (maybe taxable in India)

Thanks again.

Hi All.

Following up on this query to identiy fixed income investment that are tax exempt in UK

1. Are RBI government bonds interest tax exempt in UK under DTAA ?
2. What is the tax treatment for Zero Coupon bonds  in India and in UK?

Thanks

Sidd