Is NRI FD Taxable?
SBNRI Team
answered on 16/11/2020
There are 3 types of NRI FDs you can choose from and 2 of them are not taxable.
- Non-Resident External (NRE) FD: For income generated outside India, maintained in INR. There is no tax in India on the interest earned.
- Non-Resident Ordinary (NRO) FD: For income generated in India, maintained in INR. The interest earned is taxed at 30% along with surcharge and cess (in form of TDS)
- Foreign Currency Non-Resident (FCNR) Deposit: Foreign Currency investment in India, maintained in foreign currency. Interest earned is not taxable in India.
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Related Questions
SBNRI Team
answered on 24/03/2020
There is no tax on FCNR Deposit in India. What is an FCNR Deposit? A Foreign Currency (Non-Resident) Account which is a term deposit account in USD, GBP, EUR, JPY, AUD, CAD, SGD, HKD, and others. The ‘term’ in a term deposit account is a fixed tenure of up to 12 months, 24 months, […]
SBNRI Team
answered on 23/03/2020
Minimum tenure of NRE FD is 1 year. The NRE account can be opened for the purpose of maintaining the income earned outside India with tax free interest (upto 7.25%*) on Fixed Deposits. Both the principal amount and interest earned are completely repatriable from India. Although, domestic credits aren’t allowed. NRE FD Premature Withdrawal […]
SBNRI Team
answered on 23/03/2020
The Minimum tenure of an FCNR Deposit is 1 year. What is an FCNR Deposit? A Foreign Currency (Non-Resident) Account which is a term deposit account in USD, GBP, EUR, JPY, AUD, CAD, SGD, HKD, and others. The ‘term’ in a term deposit account is a fixed tenure of up to 12 months, 24 months, […]
SBNRI Team
answered on 24/03/2020
NRE Deposit is tax-free in India as NRE Accounts are meant to maintain the income earned outside India. If you withdraw the funds from your NRE Fixed Deposit Account before 1 year (premature withdrawal) no interest will be paid on the NRE deposit. The NRE account can be opened for the purpose of maintaining […]
