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Mihir Tanna |1019 Answers |Ask -Follow

Tax Expert - Answered on Oct 19, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Rajesh on Sep 30, 2023Hindi

How to show the interest earned from the NRE accounts for the period of stay in India in the income of the year when NRE status is changed to RI ? Whether bank will deduct the TDS for interest earned from the date of change of status from NRE to RI or from date of coming back to India?

Ans: Income from interest on NRE A/c will be taxable as Income from other sources, once person become resident. Bank will deduct TDS once change of status is informed.

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Question by Mahesh - Aug 25, 2021Hindi

I was working abroad since June 2009 and returned back to India permanently on October 28, 2020. I changed my NRE bank account status to that of resident saving account in November 2020. Also, the FDs in the NRE account status were changed to resident saving account FDs. The interest accrued on these FDs on December 31, 2020, on quarterly basis and the bank cut TDS on the same. Also, TDS deducted in the March 2021 quarter on FD interest/ matured FDs in this quarter. My questions are: 1. While filing tax for the financial year April 2020 to March 2021, will the interest income on the savings account and the FDs be considered from the date of account status changed from NRE to resident saving account? Or will the interest income be considered from Mar 2020 (ie, for whole year)?

Ans: As per the RBI's master directions, upon returning to India permanently, the existing NRE FD account of the NRI account holder is required to be converted to a resident account, without any changes in the promised rate of interest.

The interest earned from the NRE FD is not taxable. However, after it is converted to a resident FD, the interest earned is taxed as per your income tax slab. TDS will be deducted if applicable.

2. If the answer of the first question is from the date of account status change, then the total income for the year will be less than exempted income. In this case, can I get tax return on deducted TDS on FDs after filing ITR?

Anil Rego Yes. Once you file ITR, you can claim a refund for any extra tax paid.

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Mihir Tanna |1019 Answers |Ask -Follow

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