Hi Sreekanth,
I am an NRI who has returned to India after 12 years and have become a resident in early October 2016 (182 days in FY 16-17).
Have converted my NRE accounts & NRE FD's to Resident; would like to check with you weather I should pay taxes on the interest earned on my FD' for the whole year i.e Apr 16 to Mar 17 or only from Oct 16 -Mar 17.
Also as my only source of income is Bank FD's should I be paying advance tax? Do I need to pay advance tax in the current year i.e FY 16-17; Have not filed my Income tax for the past 12 years when I was as NRI as my Indian income was below the threshold.
Appreciate your advice.
Thanks
Rajeev
1 Answers
Hi Rajeev,
If you have converted your NRE accounts to Resident Accounts then I believe that interest is taxable for the whole year FY 2016-17.
Actually, you could have moved the deposits to RFC accounts and could have got tax-free income for few more years.
Advance tax is the income tax payable if your tax liability is more than Rs. 10,000 in a financial year.
Suggest you to kindly consult a CA and take help in filing your income tax return.
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