one of my client was enjoying NRI status 7years back. at the timing of returning india there were deposits in NRE bank accounts. now in current year he is having status of resident in india and i want to know whether the interest received in NRE account is taxable or not?
please also provide section references or any case laws
26 August 2010
No case laws it is exempt u/s 10(4)(ii)
(ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and the rules made thereunder :
Provided that such individual is a person resident outside India as defined in clause (q) of section 282 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account ;]]
i have read that section..but according to that section income is exempted only when the person is resident outside India and as per my case he is resident in India, 7 years back he was NRI, i am not 100% sure but as per my knowledge income earned is exempted if an NR returns to india for 7 years.
26 August 2010
the condition given is such individual is a person resident outside India as defined in clause (q) of section 282 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account.
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