tag:blogger.com,1999:blog-7036721709697976873.post7121164440226499363..comments2023-09-01T23:33:35.514-07:00Comments on SavingsFunda: Does Interest on NRE Fixed Deposit is Taxable?javin paulhttp://www.blogger.com/profile/15028902221295732276noreply@blogger.comBlogger108125tag:blogger.com,1999:blog-7036721709697976873.post-54388866605613272162018-02-22T17:53:11.393-08:002018-02-22T17:53:11.393-08:00Hi Suresh,this is certainly good information. But ...Hi Suresh,this is certainly good information. But do you have a source for this since I had known you need to pay taxes on accrued interest also even if it is not repatriated back to the resident countryAnonymoushttps://www.blogger.com/profile/08925373457199993256noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-27438533481344621562017-11-22T02:10:40.013-08:002017-11-22T02:10:40.013-08:00Dear Mr Javin
some of the NRI FDS already matured,...Dear Mr Javin<br />some of the NRI FDS already matured, can i prolong it for another five years now? And if i decide to return india , The interest on NRI FDS will be taxable on prolonged NRI FDS. please clear it . thanks in advanceAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-43216597016007729812017-11-22T02:03:24.900-08:002017-11-22T02:03:24.900-08:00Dear Mr Javin
i was an NRI FROM 1994 T0 2015 , in ...Dear Mr Javin<br />i was an NRI FROM 1994 T0 2015 , in 2015 a spend more then sex months in india , in 2016 december finally i settles outside india . In the periog in between 1994 to 2015 i spend around 300 days in india .Now again i am planing to settle down in dia , I have NRI FD , may i continue with this nri fd without any tax liabilities? or it will be taxable for that period when i becomes resident . Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-79761267171496007592017-11-04T02:07:02.342-07:002017-11-04T02:07:02.342-07:00Thank you @Anirban, that's very useful informa...Thank you @Anirban, that's very useful information. javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-34418237367745704392017-10-30T04:44:11.272-07:002017-10-30T04:44:11.272-07:00https://economictimes.indiatimes.com/nri/nri-tax/a...https://economictimes.indiatimes.com/nri/nri-tax/all-you-wanted-to-know-about-tds-for-nris/articleshow/8804125.cms<br /><br />I find it very useful.Anonymoushttps://www.blogger.com/profile/11661097050845013960noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-64272964511417069652017-10-15T05:37:52.749-07:002017-10-15T05:37:52.749-07:00Yes, they are different, and the interest rate has...Yes, they are different, and the interest rate has gone down darstically from 2014, so it is indeed less than 7% in almost all banks for NRE FDs.Anonymoushttps://www.blogger.com/profile/11661097050845013960noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-68028112783372483442017-10-15T05:32:19.252-07:002017-10-15T05:32:19.252-07:00very good point, it is good to know indeed.very good point, it is good to know indeed.Anonymoushttps://www.blogger.com/profile/11661097050845013960noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-6976669738227027222017-10-15T04:49:20.279-07:002017-10-15T04:49:20.279-07:00Thanks, It is good to know!Thanks, It is good to know!Anonymoushttps://www.blogger.com/profile/11661097050845013960noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-34899219740553197522017-10-14T13:30:05.542-07:002017-10-14T13:30:05.542-07:00hi,
Actually is there any difference between NRE n...hi,<br />Actually is there any difference between NRE normal account and NRE FD ? what is being reffered through out this page as NRE FD , is it same as a transfer of fund from abroad to a NRE account ? <br />Also, is the interest rate of 9% still valid, as I have 2,000,0000 rupee in SIB accumulated over 5 years period in NRE account, earlier I use to get 9% but now its only 6.5%Noorudheen KMhttps://www.blogger.com/profile/01482079326578665219noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-27900561321653655342017-09-15T23:39:21.131-07:002017-09-15T23:39:21.131-07:00Dear Mr.Javin,
Thank you very much for your reply ...Dear Mr.Javin,<br />Thank you very much for your reply on the matter of NRE FD & its interest taxable or not. That means as per your above explanation one can continue the existing NRE FDs till his status of RNOR & interest earned during RNOR status is not taxable. I am happy to note this, becuase it will be a big relief for me as I have many NRE FDs which will mature even after my RNOR status. However can you please send me the respective clauses of either IT department or FEMA or whatever may be to support this issue if the need arises. It is very surprising as nowhere & nobody is clearly explaining about the issue of NRE FDs during RNOR status of an NRI.<br /><br />Rgds,<br />RajannaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-75136463871199016312017-09-06T17:53:44.704-07:002017-09-06T17:53:44.704-07:00Hello Anonymous,
You can keep your NRE account as...Hello Anonymous, <br />You can keep your NRE account as long as you maintain RNOR status which is for two years as you said. The global income of RNOR is not taxed and interest earned on NRE account is part of that hence you don't need to pay tax on them. Once you become normal resident, you need to convert them bak to normal account and then TDS will be applicable. javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-62700935275322325572017-08-23T12:53:17.666-07:002017-08-23T12:53:17.666-07:00Just for additional clarification..the NRE Interes...Just for additional clarification..the NRE Interest income is taxable in the resident country only when you are bringing the interest money back. For example: If you invested $10,000 USD and you made let's say $2000 as interest on NRE account for the term. If you bring $10,000 USD (your principle), you do not pay any taxes. If you do NOT bring the interest back to the resident country you do not pay the taxes. You can use the earned interest money for your vacation in India or buy some thing or spend on your parents, without paying any taxes in the resident country. Bottom line is, as long as you do not bring the interest back to the resident country, you do not pay taxes. Right? Question would be when you bring the principle back, how to do you declare it’s only the principle that you are bringing back?Anonymoushttps://www.blogger.com/profile/14658625682850160975noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-3353531006856209572017-08-17T01:54:12.337-07:002017-08-17T01:54:12.337-07:00Dear Sir,
I am also NRI for the past 14 years &...Dear Sir,<br />I am also NRI for the past 14 years & now planning to return & I also have many NRE FDs which will mature may be after 5 years from the date of my return. Eventhough I get RNOR status for two years but still I am confused whether the interest earned from NRE FDs will be Tax Free atleast upto RNOR status period. No clarity about this from any Bank or in any IT clause. Can you share your experience int his issue.<br />Rgds<br />rajannakv2000@yahoo.com Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-23294286388401639212017-07-06T05:39:16.089-07:002017-07-06T05:39:16.089-07:00Hello Anonymous,
Since you are transferring funds ...Hello Anonymous,<br />Since you are transferring funds on your wife's account it is not considered as income but gift and gift to immediate family member is tax free in India, so she doesn't need to pay any tax.<br /><br />But, since she is living with you overseas, she is now NRI and cannot hold an ordinary bank account, you need to inform her bank to convert that account to NRO account. javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-35855069340391499272017-07-06T05:25:16.394-07:002017-07-06T05:25:16.394-07:00Dear Javin,
Thanks for such an educative blog. I ...Dear Javin, <br />Thanks for such an educative blog. I am NRI living in Middle East with my wife. My wife is on family dependent visa and don’t have separate earning. I am having NRE account in India whereas my wife has ordinary account in the same bank. Usually I transfer and save money to my NRE account. Since 1 year every month I am transferring 20k from my NRE A/C to my wife’s ordinary saving account which aggregates less than 2.5 Lakh per annum. So far I never experienced any income tax submission in India that’s why not pretty sure whether I will need to file ITR. <br /><br />Seeking your opinion about tax implications. <br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-43169678637633010112017-06-27T06:55:54.272-07:002017-06-27T06:55:54.272-07:00Hello @Rajeev, please check if you have NRO accoun...Hello @Rajeev, please check if you have NRO account or NRE account. You need to submit 15G/H if you have NRO account but for NRE fixed deposit, there is no such requirement. The interest earned on NRE FD is fully tax free in India.javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-85376214558999131712017-06-20T06:38:26.237-07:002017-06-20T06:38:26.237-07:00Hello @Unknown, if interest from fixed deposit is ...Hello @Unknown, if interest from fixed deposit is your only income and it doesn't cross the threshold e.g. 2.5 lakh for man and around 2.8 to 3 lakh for woman then you can file income tax return and always claim the money deducted as TDS. javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-22499891811204848432017-06-19T08:03:22.025-07:002017-06-19T08:03:22.025-07:00Hello. I live in uk and do not have any income as...Hello. I live in uk and do not have any income as my husband works. I have nro account and in case I start fixed deposits in my nro account, I will be taxed. But can I claim tax when I file my tax return in India? Also where do you get 15 G form? Do I need to give it to bank.Hellohttps://www.blogger.com/profile/07027396554893326886noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-38935047353804001852017-04-08T07:21:11.467-07:002017-04-08T07:21:11.467-07:00Thanks Javin. Very helpful.
Krishna Thanks Javin. Very helpful.<br />Krishna Anonymoushttps://www.blogger.com/profile/06724423520179981481noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-28995602088066511492017-04-07T21:38:38.481-07:002017-04-07T21:38:38.481-07:00Hello Krishna, Since you are working for US based ...Hello Krishna, Since you are working for US based International NGO and working in Nepal, it's really complicated. I think since you are earning from US employer, you are liable to federal tax in USA. But, since you are not earning in India, salary credited to NRE account will not attract tax for sure. I suggest you speak to your company HR about your taxation in the USA. javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-15579918476014632562017-04-07T20:44:57.934-07:002017-04-07T20:44:57.934-07:00Thanks Javin. I work for an US based international...Thanks Javin. I work for an US based international NGO and based in Nepal. So I get my salary from US in dollars and credited to resident account in India. This has significant tax implications. So I wanted to understand if I get my salary credited to NRE account in India, then can I save tax on the deposit/salary? I know that interest earned in tax exempted. But confused about the deposit/salary. Is it also tax exempt? Thanks for your support.<br />Krishna Anonymoushttps://www.blogger.com/profile/06724423520179981481noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-69705983279353819922017-04-07T05:41:10.509-07:002017-04-07T05:41:10.509-07:00Hello @Anonnymous, you should open an NRE account ...Hello @Anonnymous, you should open an NRE account and remit money on that, it's good for tax purpose and you should convert your resident saving account to NRO account, it is required by law.javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-18386638496803165362017-04-07T05:40:14.238-07:002017-04-07T05:40:14.238-07:00Hello @Anonymous, interest earned on NRE fixed dep...Hello @Anonymous, interest earned on NRE fixed deposit is not taxable even if they are more than 2.5 lakh. You don't need to file income tax return if that's your only income.javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-18376821814216205192017-04-07T05:39:17.252-07:002017-04-07T05:39:17.252-07:00No, deposit will not be taxable but you need to pa...No, deposit will not be taxable but you need to pay tax on the country where you are earning. javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.comtag:blogger.com,1999:blog-7036721709697976873.post-74343526720267447342017-04-07T05:38:43.197-07:002017-04-07T05:38:43.197-07:00Hello Ansatlav, No, interest earned on NRE fixed d...Hello Ansatlav, No, interest earned on NRE fixed deposit is not considered as taxable income and you don't need to show them in your income tax return.javin paulhttps://www.blogger.com/profile/15028902221295732276noreply@blogger.com