The Web


 Latest Business news on mobile: sms BIZ to 7333

Home > Business > Business Headline > Budget 2005-06 > Report

NRIs, rejoice! NRE interest to be tax free!

February 28, 2005 18:07 IST

In a move that would benefit to NRIs, Finance Minister P Chidambaram extended tax exemption on interest in Non-Resident (external) Account and on interest payable by a scheduled bank to Non-Resident Indians.

At present, interest income accrued before March 31, 2005, on money deposited in an NR(E) account in any bank is exempt from income tax.

Similarly, the interest payable by a scheduled bank before April 1, 2005 to a non-resident or a person who is not ordinarily resident on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the RBI is exempt from income tax.

Both these exemptions would now also be available after April 1, 2005, as per the Budget proposals for 2005-06.

However, these amendments would be in effect from April 1, 2006 and apply in relation to the assessment year 2006-07 and subsequent years.

© Copyright 2005 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Budget 2005-06: Complete Coverage

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article

Copyright © 2006 India Limited. All Rights Reserved.