25 November 2016
Dear sir,
If a son lends Rs 5 lacs to his father through cheque, and after a period, father repays the loan by cash. Son is an NRI and having both NRE and NRO accounts.
My query is that if son deposits that money received(5lacs) to NRO accounts, is it taxable?
if yes is there any method to exempt from tax?
26 November 2016
The general rate of withholding tax for NRO interest on savings and deposits is 30% (plus applicable surcharge and cess). In case the customer has a valid Tax Residency Certificate (TRC), Form 10F and PAN , the benefit of DTAA can be extended and a lower rate of withholding tax will be applicable.
CAclubindia
