RNOR status and exemption on RFC account interest

ITR 567 views 1 replies

Hello,

I have RNOR status and hold RFC deposits.

Bank reported all interests on AIS / 26AS, deducted tds assuming resident and not RNOR.

I believe I can show exempt interest as per 10(15) iv fa,  in Schedule EI.

However my CA says it will get notices because my interest income in Schedule OS and main calculation will not match AIS. SInce the ITR3 form does not show full interest in the main calculation and then subtract Schedule EI exempt interest, it will attract immediate notice as lesser interest will be shown even though Schedule EI will have exempt interest documented but not used in calculation elsewhere.

Is this correct and should I not claim exemption on interest income on RFC deposits?

Any shared experience claiming RNOR RFC interest exemption with banks reporting all interests on AIS, will be highly appreciated.

Thanks in advance.

 

Replies (1)

@ Srijan Didwania

Your CA is correct. Any MAJOR variation from AIS in your filing would immediately be picked up as a serious discrepancy by the ITR processing software in CPC and a Notice would be generated automatically.

You should first discuss with your bank on how they wish to resolve this problem since it is their mistake.

Then consult your CA again.


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