Dear Sir,
My daughter is NRI and she is having NRE & NRO account for transactions in India. She is transferring money to India to NRE account for repaying education loan and she is maintaining minimum balances in NRO account. Interest on NRO SB account is credited and TDS is done by banker which is marginal and total is less than Rs. 100. 1) Does she has to file income tax return since TDS is done ?
2) No TDS is done for NRE account, what is the reason I am not aware ?
Please let me know. Thanks & Regards.
1 Answers
Hi,
Interest earned on Non Resident External (NRE) accounts and Foreign Currency Non Resident (FCNR) accounts are tax free in India. Hence, there would beno TDS. However, interest earned on the Non Resident Ordinary Account (NRO) is taxable and will be subject to a TDS.
My suggestion would be to file ITR. Kindly take help of a CA and get it done.
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