28 January 2014
Is nro account holder ineligible to invest in bank FD us 80 c for tax planning for income from interest and rent fr house property in india? sbi refuse to open one.its own br neo account holder. pl. enlighten suggest alternative investment
30 January 2014
Any account opened by NRI account and interest earned from the said account is exempted from tax.
House property income is taxable in India and the FD is not the option for 80C. Only the exemption for the instruments stated in section 80C are eligible for taking the benefit against HP income. So suggest your NRI client that he should invest only in the exempted criteria as specified u/s 80C and not FD account in NRO A/c.
If your client is a NRI and has opened NRO account then the Bank cannot refuse to open FD from NRO account.
CAclubindia
