Whether funds received under FIRPS arrangement can be credited to FCNR (B) and FCNR (B) and NRNR account?
Funds received under FIRPS arrangement can be credited to NRNR account. But for credit to FCNR (B), funds should be credited to NRE account and thereafter these funds can be transferred to FCNR (B) account. • After becoming non-resident Indian, interest payable on balances held in unmatured NRE/FCNR (B) time deposits till maturity is exempted from Income-Tax. As per Finance Bill 1994-95 passed recently, banks are instructed to deduct 10% of interest paid plus interest tax as income tax, if the amount of interest paid exceed Rs. 10000/- on deposits received after 1 July 1995? Authorised dealer should not exempt deduction of tax, if the person falls under the category of resident and ordinarily resident (Refer Table No. 9.1) • At paragraph 14 E.7 (ii) of chapter 14 of Exchange Control Manual, it has been stated “On the dealth of a RFC account holder, the balance in the account may be repartriated to the nominees to the extent of his/their entitlement, if on the date of death of the accou
