Srinivas Kanchanapalli asked on 16/11/2020

What about tax on NRE FDs during RNOR status?

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SBNRI Team
answered on 16/11/2020

The NRE FDs doesn’t need to be converted to resident accounts after you return to India. They can remain as-is till maturity.

 

Post maturity, the NRE FD can be converted to a Resident Foreign Currency (RFC) Account. The interest earned on NRE Deposits that have been converted to RFC Accounts will be exempt from tax if the status of the returning NRI is RNOR (Resident but Not Ordinarily Resident)

 

Also Read: Top 3 tips for NRIs returning to India

 

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