Int on fd

This query is : Resolved

Komal gupta (Querist)
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05 December 2017 Sir,
Whether interest on fd in NRE Account is taxable or not for NRI. If it is exempted then please specify the section.

Thanks

Sumeet

Sumeet (Expert)
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05 December 2017 Hello,

Yes Interest income credit to NRE Account is exempted. Refer Section 10(4)(ii)

Komal gupta

Komal gupta (Querist)
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05 December 2017 Sir as per sec 10(4)(ii) int amount on deposited in NRE Account Exempt . this is not for FD Account.
Please provide clarification

Thanks

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Sumeet

Sumeet (Expert)
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05 December 2017 If your Fixed Deposit is opened through NRE A/c (i.e linked to NRE A/c) interest will not be taxable. Deposits in NRE A/c includes Fixed Deposits.
However you should make an enquiry with your Bank about nature of deposit just to be safe.

Hope this helps.