Tax implication of NRE deposits
I am an NRI who will be returning to India soon. I have quite a few NRE deposits which will mature after my return to India. My question is: Do I have to pay tax on interest earned on NRE deposits as soon as I return ? Or it will not be taxed till my status remains Resident but not ordinarily resident (RNOR). more
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First unless monies are spent or cheques issued from your bank account a worry will not arise.Wife spending for house hold is o.k.,not for gold or house which becomes benami by definition of 1988 law. But submission of yearly returns for IT is the best way to connect a pan /adhar and the deposits.It has to be done for protecting the savings from future problems ,if any. more
Aug 20
As far aas my knowledge goes, till you ceases your status as NRI you are eligible for tax benifits, but once you ceases from such status you are governed by local laws. more
Aug 19
This is correct for NRIs . But how about for eg. A US citizen who is here with OCI card. NRIS are Indian citizens. But what is the ruke for US citizens. more
Aug 20
Mr.Gupta: you are saying "NRE FD is not taxable in India or in the country you are residing except in USA" So if I live in UK or Austaralia I can put all my savings in NRE FD and shelter it and pay no taxes in either country??? Then most if not all Indians abroad ( except US) will stash their money in India and our FOREX exchange reserve will over flow with surplus!!!!! Middle East is different as there is no income tax there. As for US you are right as I am US citizen and file taxes both here and there., US income in US and Indian income in India and declare my Indian income in US. Ashok ji, first of all, I apologize if any of my word in my reply would have hurt you, but I never wrote any thing of that nature which was rude. I have stated the facts and again will like to clarify that the interest on NRE FD's is not taxable in India or in the country you are residing, except in US where your global income is taxed. If you think, that my information is incorrect, it is upto you to correct yourself or not but please don't blame me for being rude. more
Aug 12
My only doubt is : As A US citizen with OCI you can stay here as long as you want. Some CAs tell me I have to pay taxes in India for my US earnings. I think it is not true as there is a double taxation treaty. I pay taxes in US and also,pay taxes for income earned if any in India. As you sais other countries may also be following the US system of taxation or in some form of it more
Aug 13
I know. I pay taxes in US and also in India. more
Aug 13
Mr. C.S. Narayanan (Medical Radiation Physicist): Check on the facts before you act on Mr. Gupta's advice. more
Aug 13
Mr Sarangi had asked a simple question and it seems some gentlemen have made it complicated for him to understand about taxation rules of India for returning Indians. I have given the exact rules as applicable. It is for Mr Sarangi to now move forward and let us close this issue now. more
Aug 10
Taxations rules in India for NRIs become complex due to the definition of Resident, Non Resident etc. it compounds when they do not adress the difference between foreign nationals with OCI and NRIs who are Indian citizens. more
Aug 12
