Question ID :
40605
Taxation of interest income earned on NRE deposit on change of residential status to Resident
A Individual has who was an NRI has permanently shifted back to India. There are NRE deposits in his name. What will the tax treatment of interest earned from NRE deposit post change of residential status from NRI to resident.
Posted by
SHRADDHA S KAMATH
on
Mar 13, 2020
Filed Under
DIRECT TAXES
If the interest is from FCNR(B) account, exemption from income tax can be claimed per proviso to section 10(4) till the maturity even if the depositor returns permanently to India.
Posted by
B.CHACKRAPANI WARRIER on
Mar 13, 2020
Answer ID :
80462
All the Interest Income will become taxable.
Posted by
CA. BIPIN KUMAR on
Mar 15, 2020
Answer ID :
80463
NRE deposit is taxable in the hands of resident person.
Posted by
CA. chunauti dholakia on
Mar 17, 2020
Answer ID :
80468
Experts may go through the link https://m.rbi.org.in/scripts/FS_FAQs.aspx?Id=52&fn=5 which may be read along with section 10(4) and reconsider your above observations.
Posted by
B.CHACKRAPANI WARRIER on
Mar 19, 2020