Cost of Living in India (Planning to move back)

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birentoronto
Member since: Sep 08

Posts: 122
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Posted on: 25-10-11 12:29:34

can u give more details about TDS ?

Quote:
Originally posted by Fido

8% plus with 30% TDS or 15% TDS if multi country tax treaty exists . Fuly repartriable.. Check the NRO deposit thread on the left .

ash1967
Member since: Oct 11

Posts: 28
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Posted on: 25-10-11 15:36:42

Quote:
Originally posted by Fido
8% plus with 30% TDS or 15% TDS if multi country tax treaty exists . Fuly repartriable.. Check the NRO deposit thread on the left .

I believe, the TDS will apply only if the money is repatriated. This http://timesofindia.indiatimes.com/nri/other-news/How-to-remit-NRO-account-funds-abroad/articleshow/10444455.cms is for How to remit NRO account funds abroad. However, if the money is spent in India in Rs, than there shouldn't be any TDS.
(correct me if I am wrong)
Isn't the current interest rate at 9.25% (duration for >1 year period). http://www.centralbankofindia.co.in/Site/Interest.aspx

rajcanada
Member since: Jul 03

Posts: 2713
Location: Kitchener, ON
Post ID: #PID

Posted on: 26-10-11 07:18:57

Quote:
Originally posted by ash1967

...
I believe, the TDS will apply only if the money is repatriated. This http://timesofindia.indiatimes.com/nri/other-news/How-to-remit-NRO-account-funds-abroad/articleshow/10444455.cms is for How to remit NRO account funds abroad. However, if the money is spent in India in Rs, than there shouldn't be any TDS.
(correct me if I am wrong)
Isn't the current interest rate at 9.25% (duration for >1 year period). http://www.centralbankofindia.co.in/Site/Interest.aspx</font>

TDS will be deducted by bank if interest is more than Rs. 10,000 or you can submit form 15H.

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Heart Stealer
Member since: Feb 09

Posts: 80
Location: Canada
Post ID: #PID

Posted on: 26-10-11 07:33:22

Quote:
Originally posted by ash1967

Quote:
Originally posted by Fido
8% plus with 30% TDS or 15% TDS if multi country tax treaty exists . Fuly repartriable.. Check the NRO deposit thread on the left .

I believe, the TDS will apply only if the money is repatriated. This http://timesofindia.indiatimes.com/nri/other-news/How-to-remit-NRO-account-funds-abroad/articleshow/10444455.cms is for How to remit NRO account funds abroad. However, if the money is spent in India in Rs, than there shouldn't be any TDS.
(correct me if I am wrong)
Isn't the current interest rate at 9.25% (duration for >1 year period). http://www.centralbankofindia.co.in/Site/Interest.aspx</font>

Please note what will be in NRO account

The funds in NRO account are usually from income earned locally, like rent on a property in India or certain capital account transactions like sale of property purchased prior to becoming an NRI.

So any money earned abroad and transferred to India will need to be kept in NRE account and not in NRO account.

TDS on interest income on these NRO deposits will be deducted in any case on regular basis by bank.

Income tax Section 80L used to allow deduction of interest earned on, say, a National Savings Certificate or a bank deposit up to a limit of Rs 12,000. But now all these are gone.

The bank will deduct income tax at source (TDS) if the interest income from fixed deposits in any bank branch exceeds Rs 10,000 in a financial year. In case an individual holds more than one account in the same bank branch, tax will be deducted if the total interest payment exceeds Rs 10,000. However, if the total income of the depositor, including the bank interest, does not exceed the basic tax exemption limit, which is Rs 1.5 lakh in case of males, Rs 1.85 lakh for females and Rs 2.25 lakh for senior citizens.

However, the depositor can submit Form 15H to the bank, based on which the bank will not deduct income tax at source.

Hope this helps.

ash1967
Member since: Oct 11

Posts: 28
Location:
Post ID: #PID

Posted on: 02-11-11 17:38:23

What are the limitations in India as an OCI status (with Canadian citizenship).
How does it affects, when someone with OCI status passes away (dies), will the Indian law apply in the inheritance of assets in India or will the Canadian law be applicable

ash1967
Member since: Oct 11

Posts: 28
Location:
Post ID: #PID

Posted on: 02-03-12 14:43:00

NRE deposit interest rates at various Indian banks are offering 9.5% ....
is there any with-holding tax (or TDS -Tax Deduction at source) for this interest income..

web2000
Member since: May 06

Posts: 849
Location:
Post ID: #PID

Posted on: 05-03-12 11:39:07

Quote:
Originally posted by ash1967

NRE deposit interest rates at various Indian banks are offering 9.5% ....
is there any with-holding tax (or TDS -Tax Deduction at source) for this interest income..

There is no TDS/Tax on NRE account

Contributors: ash1967(5) birentoronto(1) rajcanada(1) tamilkuravan(1) Heart Stealer(1) meitsme(1) web2000(1) Fido(1) ramar2005(1) san-hugo(1)

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