NRE - Account interest

This query is : Resolved

Sudhaker Ramani (Querist)
Follow

12 July 2024 Dear Sir
For NRI , we are filing Income Tax through ITR 2 ,

We have details of interest earned from NRO Account , which is reflected in 26AS Traces .

Do we also need to show the Interest Earned through NRE Account , if Yes then under which section it should be shown

Seek Guidance

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 July 2024 As per section 10(4)(ii) of the Act, the NRE interest is exempt from tax for those who are treated as a ‘Person Resident Outside India (PROI) as per the Foreign Exchange Management Act, 1999 (FEMA) or if the person is permitted to continue holding such an account by the RBI.
In other words, NRE interest is taxable for a person who qualifies as a Person Resident in India (PRI) as per FEMA and does not have permission from the RBI to maintain it.
If exempt income, you can declare in under Schedule EI.