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Taxation on NRO account

Tax queries 186 views 3 replies

Andravish

Software Engineer

14 Points Joined August 2022

Hi all,

I have some savings in my Indian savings account accumulated from my monthly salary earnings.

I recently moved abroad and need to convert my savings account to NRO account. But once I do that, all interest on my savings will accrue 30% TDS.

I am not sure why my Indian savings accumulated from already taxed salary should now be taxed at 30% because of NRI status. Is there a legal way to avoid this taxation?

Thanks and Regards

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

198142 Points Joined July 2016

Interest credited on the balance is subject to TDS, which you can claim refund by filing ITR.

Andravish

Software Engineer

14 Points Joined August 2022

Hi sir,

Thanks for replying. The refund for TDS on interest credited would be deductible only up to 10k right?

Also, if I have no other income in India, which means my total income for the FY is less than 2.5L, then can I simply get a refund for the entire TDS deducted on the interest of my savings in the NRO account?

Thanks again for replying!

Kind regards