SHRESTHA GHS (Service) (5 Points)
11 June 2022Interest earned on NRE saving account and FD is fully exempted from tax section 10(4)ii, please advise. How to report this income and claim exemption UNDER ITR 2 under head income from other sources as cannot see the option in the form.
CA Rashmi Gandhi
(Chartered Accountant)
(86313 Points)
Replied 11 June 2022
Anantha narayanan B
(30 Points)
Replied 11 June 2022
SHRESTHA GHS
(Service)
(5 Points)
Replied 11 June 2022
NRE INTEREST EARNED IS NOT TAXABLE IN INDIA fully exempted section 10(4)ii UNTIL STATUS IS NRI ONLY INTEREST RECEIVED UNDER NRO IS TAXABLE.
Advise required how to report income and exemption under form ITR2.
SHRESTHA GHS
(Service)
(5 Points)
Replied 11 June 2022
Thanks Anantha yes this is correct update not the one provided by CA Rashmi.
CA Rashmi Gandhi
(Chartered Accountant)
(86313 Points)
Replied 11 June 2022
Agreed with Anantha , Interest earned on an NRE account and FCNR account is tax-free. Interest on NRO accounts is taxable in the hands of an NRI.
CA Puja Sharma
(Chartered Accountant)
(4995 Points)
Replied 11 June 2022
Report the income under the section "Exempt Income". It will not be reported under the head of other sources.
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 12 June 2022
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