Nro interest is taxable or not ?

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2013 I am NRI and living at Dubai. I have NRO account and earned interest income. Tds deducted under sec 195 @ 12.5 % (because of DTAA) agreement on interest income. is interest income taxable under income tax act or not ?

Please advice how to not make tax liability on NRO interest income and reason also ?

@VaibhavJ

@VaibhavJ (Expert)
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08 March 2013 Hi,

The interest earned on any type of NRO bank as well as the credit balances in this kind of account are taxed under the account holder’s tax bracket.

On the other hand, interest earned on the NRE account is totally exempted from income tax, and the credit balances in the account don’t attract any wealth tax.

Read more at: https://www.caclubindia.com/forum/closer-look-to-nre-nro-a-c-taxability-231692.asp

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2013 Thanks a Ton Vaibhav :)

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Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2013 Thanks a Ton Vaibhav :)