I am an NRI getting around 60 Lakhs yearly interest on my NRE deposits which at present is tax free. When I become a Resident Indian then how much tax I would have to pay for the 60 Lakhs yearly interest.

Ans: Person cannot avail the exemption under section 10(4)(ii) of the Act and the NRE interest income earned for the entire year shall become taxable till the time the account is operational. Further, the taxable interest earned from the NRE account will be eligible for deduction of up to Rs 10,000 (for savings interest only), under section 80TTA and up to INR 50,000 (for senior citizens) under section 80TTB of the Act.

Ans: As an NRI, your NRE (Non-Resident External) fixed deposits with SBI generate tax-exempt interest income in India. Since the interest earned on NRE fixed deposits is exempt from tax, you are not required to file an income tax return in India solely to declare this income.

However, it's important to note that while the interest earned on NRE fixed deposits is tax-free in India, it may be subject to taxation in your country of residence based on the local tax laws. Therefore, it's advisable to consult with a tax advisor or accountant in your country of residence to understand the tax implications and reporting requirements applicable to your NRE fixed deposit interest income.

Additionally, if you have any other sources of income in India or if you meet other conditions specified by the Income Tax Act, you may be required to file an income tax return in India. It's recommended to seek professional advice to ensure compliance with both Indian and international tax regulations.

Ans: In our opinion, it should remain tax free.
Most welcome for any further clarifications. Thanks.