Nro account
J B Goel
(Querist) 18 November 2011
This query is : Resolved
As rate of interest on NRE account is just 4% pa, a NRI wants to transfer his proceeds from his NRE account to NRO account(Term Deposit with a Bank).Is there is any restrictions on such transfers and what is Tax liability in case proceeds from NRO Acount is repatriated back to foreign country.
J B Goel
Shonee Kapoor
(Expert) 19 November 2011
For interests earned in India, the tax has to be paid in India.
If India has a double taxation avoidance agreement with the country you are in, the same would be tax exempt thereafter in that country.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com