Tax on nri a/c

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2012 An NRI (now resident of UAE) is having interest income on deposits in his NRO A/c in the Indian bank. Bank has deducted TDS @ 15% on the interest amount. My query is that the slab rates are applicable to such NRI or not which are applicable to a resident are applicable to a NRI also?

U S Sharma

U S Sharma (Expert)
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29 August 2012 As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN Number to the deductor, failing which TDS shall be deducted at the maximum marginal rate or 30% (plus 3% edu cess) whichever is higher.

The interest on NRO Accounts / Deposits and PIS transactions would be covered by the said rule

* TDS, when due and applicable will be deducted in accordance with the provisions of the Income Tax Act, 1961 and the Rules thereunder as in force. Such TDS shall be recovered from saving/current/demand deposit a/c(s).

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2012 Mr. Sharma, got your view & thanks for the same. But my question is that the slab rates applicable to a resident , i.e. Upto Rs 2 Lacs - Nil; Rs 2 Lacs - Rs 5 Lacs - 10% ..... and so on, are applicable for an NRI alsofor determining his tax liability?

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