Nre bank in india

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Sir

An individual is holding a NRE Bank  A/c in India. He transfers the amount earned from foreign country to this account.From this account he makes FD AND RDs with Bank (HDFC/NATIONALISED BANK etc )in India.Are the interest earned on these FD and RDs taxable? He also earns income from other sources..

 Please reply

Thank you 

Sunil

 

Replies (1)
 Interest on NRE Deposits is taxable for Residents. For an NRI, interest earned on NRE deposits is exempt from tax in India. So long as he continue to be an NRI or a resident but not ordinarily resident – the tax exemption will continue to apply for these deposits held by him.


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