I was an NRI for last 6 years. In June 2023 I permanently returned to india and qualified as RNOR for the financial year 2023-24. In June 2023 I closed all my NRE fixed deposits and reopened as Resident FD. Is the interest income on NRE FD until June 2023 taxable for the FY 2023-24?

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.