I have lived for 344 days in india over the last seven years. so i am an RNOR.

In case my status is RNOR will i have to play income tax on interest earned by my NRE FD's
Please assume i am RNOR and let me know if interest income on NRE FD is taxable or not?
Interest on NRE is FDs is exempt from tax under section 10(4)(ii), provided you are NRI as per FEMA Act and Income tax Act. For RNOR, it is exempt under section 10(15)(iv)(fa), here condition is that you should be allowed to maintain that account under FEMA. In most cases, RNOR person has to covert its NRE account to RFC (Resident Foreign Currency) account to continue to have exemption.
Our Experts

Ameet Patel Ameet N Patel is a chartered accountant and former President of Bombay Chartered Accountants Society - BCAS

Subodh V Shah CA Subodh V Shah is a Fellow Member of the ICAI. A merit ranker throughout his career, he stood 3rd in CA Intermediate and 17th in CA Final. In addition he also got the prize of ICAI for scoring the highest marks in Direct Taxes at CA Final. He is practicing Chartered Accountant as well as a teacher for over 20 years.

Ameya Kunte Ameya Kunte is a Tax Professional, Chartered Accountant & Co-founder - Taxsutra.com

Nikhil Vadia CISA qualified Nikhil Vadia is a Chartered Accountant in practice since 1997

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on financial and tax related issues

Debashis Basu Debashis Basu is the co-founder of Moneylife, a CA by qualification with three decades of experience as a journalist and author of several books

To ask a question

Sign Up or Sign In
than you