Ex-NRI with tax-free FD income: Which period to consider for 2024-2025 ITR filing?

Ans: Dear Anonymous,

As an NRI earning interest from Fixed Deposits in India, you should file your income tax returns using Form ITR-2. This form is applicable to individuals and Hindu Undivided Families (HUFs) who have income from any sources except income from profits and gains of business or profession.

Please note that the interest earned on your FDs is taxable in India and you are required to report this income in your tax returns. Also, remember to check if there's any Double Taxation Avoidance Agreement (DTAA) between India and your country of residence to avoid being taxed twice on the same income.

I hope this answers your question.

Best Regards

Ans: No, the interest income on your NRE FD earned until June 2023 is not taxable for the financial year (FY) 2023-24.

Here's why:

• NRE accounts are tax-exempt in India for NRIs. This means any interest earned on your NRE FD up to the point you became a resident (June 2023) is not subject to tax in India.
• Income tax is based on your residency status for the financial year. Since you were an NRI until June 2023 (falling within FY 2022-23), the interest income on your NRE FD during that period is not considered part of your income for FY 2023-24.

However, it's important to note that:

• Interest income earned on your resident FD accounts after June 2023 will be taxable for FY 2023-24 onwards.
• If you have any further questions about NRE accounts, resident FD accounts, or taxation in India, it's always best to consult with a qualified tax advisor.

Ans: If your total income is Rs.7.00 (L) for the year, you should file your ITR & Claim Refund of your TDS. You are sure to get refund, subject to your any other incomes or tax savings etc.
Most welcome for any further clarifications. Thanks.

Ans: 01. I suppose your question is related to F/Y 2024-25.
02. While filing your ITR, if your tax liability is less than the TDS deducted (plus self assessment tax paid, if any), you can claim Refund, for the difference (excess paid/credited Income Tax).
Most welcome for any further clarifications. Thanks.