I am a non resident Indian & resident of Spain . I have income chargeable to tax in Spain.
Further, I have a bank account in India & I transfer amount from my Spain bank account to my India's bank account once in 2-3 months. Interest earned on that amount is consumed by my family in India.
Is that interest income earned by me is chargeable to tax ?? Whether any liability can be imposed on my family, who are beneficiary of that interest ??
7 Replies
Mayur Narwani
(50 Points)
Replied 05 December 2017
yes, you are liable for chargeable of tax becouse interest received from indian bank. & this is deemed income
Navneeth Ojha
(Student CA Final )
(116 Points)
Replied 06 December 2017
1.Income accrued at Spain is not taxable in India.
2.Income transfered from Spain Account to Indian Account not taxable.
3.But Interest accrued on Indian
account is taxable. (If the Indian account is not NRE Account)
NRE Account is opened by NRI's generally for following:
1.(Primary reason) want to park your overseas earnings remitted to India converted to Indian Rupees.
2.Want to maintain savings in Rupee but keep them liquid.
3.Want to make a joint account with another NRI.
4.Want Rupee savings to be freely repatriable.
So...sonal if u want that interest on Indian account should not be taxed make sure its NRE A/c., tc
2.Income transfered from Spain Account to Indian Account not taxable.
3.But Interest accrued on Indian
account is taxable. (If the Indian account is not NRE Account)
NRE Account is opened by NRI's generally for following:
1.(Primary reason) want to park your overseas earnings remitted to India converted to Indian Rupees.
2.Want to maintain savings in Rupee but keep them liquid.
3.Want to make a joint account with another NRI.
4.Want Rupee savings to be freely repatriable.
So...sonal if u want that interest on Indian account should not be taxed make sure its NRE A/c., tc
Navneeth Ojha
(Student CA Final )
(116 Points)
Replied 06 December 2017
Further... u may also enjoy exemption from tax up to a limit of 2.5Lakhs (in terms of ur income in india) for the incomes earned or accrued by u in India.
Sonal
(Student)
(32 Points)
Replied 06 December 2017
Alright! Thanks Navneeth Ji for your valuable guidance !
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