Posted on: 20-12-11 11:29:58
Indian banks have increased interest rates on NRE FDs to boost the in flow of dollars.
http://www.rupeetalk.com/news/general/federal-bank-south-indian-bank-hike-non-resident-external-rupee-term-deposit-rate.php
This is definitely a very good news for savers looking for better rates. What are the tax implications (for a Canadian, with OCI). How it differs for residents & non-residents of Canada. I mean those living in Canada & those Canadian living in India
Quote:
Originally posted by ash1967
This is definitely a very good news for savers looking for better rates. What are the tax implications (for a Canadian, with OCI). How it differs for residents & non-residents of Canada. I mean those living in Canada & those Canadian living in India
Funds in NRE accounts are not taxable in India.
Quote:
Originally posted by ashedfc
Interesting & very good move by RBI, it will definitely bring a lot of capital into the country (specially when some FII's are pulling money out of India, like there's no tomorrow)
Hi asuthosh,
can you provide more details of which type of account yields more interst rate and what type of account is better for canadians and tax implications.
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MK
Quote:
Originally posted by mkannuri
Quote:
Originally posted by ashedfc
Interesting & very good move by RBI, it will definitely bring a lot of capital into the country (specially when some FII's are pulling money out of India, like there's no tomorrow)
Hi asuthosh,
can you provide more details of which type of account yields more interst rate and what type of account is better for canadians and tax implications.
If you have no other sources of income in India, then NRO is best as TDS paid on interest will be refunded back after filing income tax return in India. I know there is a some kind of form you have to give to bank and they will not apply TDS.
As of now, NRE is also a best option since it is not subjected to any tax and it has attractive interest rates.
To avoid TDS, one has to provide 15G or 15H form (depending on the age) to the bank.
As I read the article, the NRE interest rates are for rupee deposits. Can that money and the interest reverted back to Can$?
KM
Quote:
Originally posted by KumarM
To avoid TDS, one has to provide 15G or 15H form (depending on the age) to the bank.
As I read the article, the NRE interest rates are for rupee deposits. Can that money and the interest reverted back to Can$?
KM
You can only deposit foreign currency in NRE account but funds are held in Rs. Principal amount and interest are fully repatriable without paying any tax in India.
