Are deposits made in NRE accounts taxable?
2 min readI’m a non-resident Indian (NRI) residing within the US and have a non-resident exterior (NRE) account with an Indian financial institution. What are the tax implications for beginning a set deposit (FD)? Also, what occurs if I return to India and grow to be a resident once more?
— Name withheld on request
For NRIs, curiosity on deposits made in NRE account aren’t taxable in India. However, if you resolve to return to India, you should convert all of your NRE accounts and FCNR deposit accounts to resident accounts. Once you declare your intent to remain in India and convert these accounts to resident accounts, the curiosity earned from NRE deposits shall be taxable in India.
Is it obligatory for NRIs to declare home property overseas of their revenue tax returns (ITRs)?
— Dilip Saksena
It is just not obligatory for NRIs to reveal particulars of property held by them within the ITR filed by them in India. Resident taxpayers with complete revenue in extra of ₹50 lakh are required to report their property and liabilities in a schedule included within the ITR.
My PPF account is maturing. Can I switch the proceeds for buying a property within the UK?
— Name withheld on request
The authorities had notified {that a} resident who subsequently turns into a non-resident throughout the maturity interval of a PPF account might proceed subscribing to it until its maturity. This is just allowed on a non-repatriation foundation.
The authorities amended this notification and mentioned that when the resident grew to become non-resident in India, the PPF account can be deemed closed and no recent deposits could possibly be made. This notification, although, was saved on maintain.
Therefore, as per the present state of affairs, a non-resident who continues to deposit in a PPF account till maturity can solely achieve this on a non-repatriable foundation.
Archit Gupta is founder and chief government officer, Clear.in.
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