Do you need to pay tax on interest earned in NRE Fixed Deposit account?

Interest earned on NRE or Non Resident External Fixed Deposit Account is tax free provided you maintain your NRI status.

So,as and and when you return back to India and become a Resident Indian, you will need to offer your interest income to tax and show the same in your Income tax return.

So,the moment you return to India and re-designate your accounts in compliance with FEMA (Foreign Exchange Management Act), you need to offer your interest income to tax.

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Harleen Kaur: A Chartered Accountant with 14+ years of experience in the Corporate world. A Finance & technology (a fintech) enthusiast, a passionate financial blogger, Founder @ Fintrakk.com and a Finance FAQ Portal. In short, a CA, a Bachelor of Commerce whose very foundation has been learning about finance. I am actively contributing towards the financial literacy goal through my business ventures and spreading awareness in the dynamic field of finance, investment, stock market, money savings, career and a lot more. Reading, learning & sharing interesting information, this is what I enjoy!! I have researched and written hundreds of blogs on Indian financial topics! Now, expanding my blogging horizon towards Personal Finance in Canada, and USA as well.

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