23 May 2013
one of my client invested in REC Bonds u/s 54ec and left India and settled abroad. what will happen after 3 years when he receives back the amount and he change his residential status from Indian to another country.
Can he receive the amt in any bank account operated outside india.
13 July 2013
Yes he can do so but please let me know that the interest which he is getting half yearly is credited to which account. Is it Indian Account or outside India A/c. The whether he is submitting his returns in India or not submitting.
The payment has to be deposited first in Indian Account and he has to open an NRO account and in that he can transfer the entire refund amount. Interest on NRO A/c in India is tax free.
CAclubindia
