My bank has wrongly deducted TDS for interest received in my NRE account.
But income from NRE account 8s exempt from tax.
Please guide how to proceeds further.
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TDS on NRE account
Replies (7)
Quick Summary
It is covered by Section 195.
Payment to NRI.
So tds will be deducted by bank or financial institutions
Payment to NRI.
So tds will be deducted by bank or financial institutions
When you file your Income Tax Return, mention the interest from NRE account under exempt interest section.
The excess TDS deducted by the bank can be claimed as refund while filing the return.
Mr. Eswar, but pyt to NRI made in NRE account ie interest is exempt under sec 10.
For the purposes of Tds deduction there is no exemption.. Exemption may be claimed in ITR and apply for tax refund
I think the bank is at fault, Interest on NRE account is totally exempt. If bank has deducted TDS ,tell them not to deduct any more TDS and ,claim the deducted TDS on filing return and claiming exempt as suggested by Puja Sharma
Interest loose it's nature and 194A is not applicable but section 195 is applicable
TDS is applicable as interest is earned in india on NRE account.Moreover tax will also be payable.Only DTAA provisions can be taken.
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