Latest Query & Reply

Dear Sir,

Client is NRI and he has Fixed Deposit with Bank when he was in India and now Annual Bank FDR Interest is Rs.75000/- on which Bank has also deducted TDS @10% Rs.7500/- as PAN is furnished.

Please suggest whether Exemption Limit of Rs.2.50 Lakh is available or not and what is the tax rate and liability applicable in this case.

Reply

Dear Sir,

Yes, exemption limit of Rs. 2.50 Lakh is available to non resident and slab rate of individual is applicable for this kind of income. As per FEMA regulation, it isn t legal to maintain a resident savings account when status of assessee has changed to NRI, the assessee should approach to the bank to convert the savings account as NRO account to comply with the Indian laws as soon as you become an NRI.