Treatment of FCNR and NRE interest earned post becoming a Resident

An NRI post becoming a resident (AY 22-23) holds FCNR and NRE deposit. Should the interest earned on these deposit be included in the income. Interest on FCNR deposit at what rate will it have to converted and included if it has to be included. Is there any disclosure of this deposit in the ITR. Kindly guide.

Replies (5)
Quick Summary
This discussion clarifies the tax implications for Non-Resident Indians (NRIs) who become residents and hold FCNR and NRE deposits. It addresses whether the interest earned on these deposits needs to be included in taxable income for Assessment Year 2022-23. The consensus is that interest on NRE accounts is taxable, while interest on FCNR accounts is generally tax-free, though specific conversion rates for inclusion might apply if taxable. Guidance is also provided on ITR disclosure requirements.

In F.Y 21-22 ( A.Y 22-23) are you resident Indian? , please clerify.
Yes. resident for AY 22-23
You have to file your ITR and show such interest as income in ITR . Nothing else required.
Interest on FCNR and NRE account is tax-free
Sorry, agreed with Prasad Nilugal, interest on NTO account taxable only

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