claiming exemptions on NRI fixed deposits

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  1. vikram m

    vikram m New Member

    As per my knowledge all NRI fixed deposits are exempted from income tax? But how to show it in IT returns...under which column? is there any limit!
  2. All NRI fixed depoists are not exempted from income tax. Only NRE FDs are exempt. NRO FD interest is taxable in India. Bank will deduct 30.90% TDS before paying interest on these deposits but you also need to declare the interest from NRO FD in your tax return - you can declare it under "Income from Other Sources". You can also take credit of TDS deducted from the NRO FD.

    As regards NRE FD interest also, it is taxable from the day you return back to India with an intention to pick up employment/settle permanently. You can claim a concessional 20% rate of tax in such cases.

    If the NRO FD amount is high, I will advise you to transfer money from NRO account to NRE account. This willl ensure money becomes tax free and freely repatriable out of India. You may need to fill and submit Form 15CA and CA certificate in Form 15CB to the bank.

  3. vikram m

    vikram m New Member

    thank you very much
    Abhinav Gulechha likes this.
  4. most welcome
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