1. Both saving and FD interest from money standing to credit in NRE account is exempt from tax.
2. Yes you are correct.
Mention both NRE and NRO account in ITR. Also cross check the income details with Form 26AS.
Interest income from savings and fixed deposits in non-residential external (NRE) rupee account
I am an NRI and have a couple of questions regarding the declaration of interest income from NRE account (Savings and Fixed/Term Deposit interests) in ITR2: 1) I know that interest income from NRE savings account is exempt from income tax. Is the interest earned on maturity of Fixed Deposits created from NRE account also exempt from income tax? I believe it is but would like to double check with you experts. 2) How can I show this exempted income in ITR2? Should I sum-up the interest earned from both NRE Savings and NRE Fixed Deposit and put the total summed-up amount in “Interest Income” of Exempt Income Schedule (Schedule EI) of ITR2?
Asked 3 years ago in Income Tax
Sir,
1) As per Section 10(4)(ii), Interest earned on your NRE Account whether saving or fixed deposits is exempt from income tax provided you qualify as a person resident outside india
2.) You have to show this exempt interest in other sources(exempt income) since it is earned in India.
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Dear Sir,
Hope you are doing well !!
1. Yes, it is also exempt u/s 10(4)(ii).
2. Yes, your understanding is correct.
You need to show the same under Exempt Income Schedule (Schedule EI) of ITR2.
Interest from NRE account is exempt.
Yes you have to sum up both amount.
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Thank you.
Hi
1. Yes, it is exempt.
2. Yes, Report it as exempt income.
1) interest income from NRE accounts (savings and fixed deposits) earned by an individual is exempt from tax in India, provided the individual qualifies as a “person resident outside India
2)Yes
Thanks all for your prompt answers. I have a follow-up question on the statement “...provided the individual qualifies as person resident outside India”, made by some of you. An NRI shall always qualify as an individual residing outside India and so I don’t understand why was this specifically mentioned by some of you?.. or am I missing something? Thanks in advance for your clarification..
Asked 3 years ago
- You are NRI therefore it is exempt in your hands. Meaning is some and you are not missing anything.
To emphasis on the fact that it is exempt only till you have NRI status.
Hi,
Yes it was just a provision to be mentioned. if you are always a non resident of India, then you qualify as a person resident outside India. Nothing specific that you are missing out.
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Since you are a NRI, interest on NRE accounts and FDs held in NRE accounts shall be exempt.
Hi
1. It is not taxable it is exempt.
2. Yes you need to report it under exempted income.
Hi
Till your status is NRI it is exempt.
No, you are not missing anything.
Since you are a NRI, both interest shall be exempt.
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