What are the tax benefits to the NRNR deposit account holders?
They enjoy the following tax benefits: • Income from the deposits will be free from Indian Income-tax. • The deposit will also be exempt from Gift tax for one-time gifting (in the case of NRIs only). • Exemption from Income-Tax will not be available to resident donee and those residents,who being joint holders, become owners of the deposit as survivor of the non-resident depositor.
Income from the deposits will be free from Income tax. The deposit will also be exempted from Gift tax for one-time gifting (in the case of NRIs only). Exemption from Income Tax will not be available to resident donee and those residents,who being joint holders, become owners of the deposit as survivor of the non-resident depositor.
Ans.They enjoy the following tax benefits: i) Income from the deposits will be free from Indian Income-tax. ii) The deposit will also be exempt from Gift tax for one-time gifting (in the cae of NRIs only). iii) Exemption from Income-Tax will not be available to resident donee and those residents, who being joint holders, become owners of the deposit as survivor of the non-resident depositor. Q. 145 What about tax benefits on funds held in FCNR accounts? Ans. Tax Exemption on interest earned on deposits held in foreign currency is available to non-residents and persons who are not ordinarily resident in India as defined under Income-tax Act, 1961. Q. 146 What is the approved method of sending remittances into India? Ans. The approved method of sending remittances into India is through normal banking channels. Q. 147 At what rates are remittances in foreign currencies made by NRIs converted by banks into rupees? Ans. Such remittances will be converted by banks at the market rate of excha
