sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 Want to file your income tax return online? Here’s the first step
 Good news for income tax payers! Taxmen can’t deny assessee’s legitimate claim in revised return, rules ITAT
 Can file revised return after notice issued by I-T ITAT
 How to file income tax returns online if you don't have Form 16 ITR 2018-19
 These 5 websites can help you file your ITR Income tax e-filing
 Here's why some retirees no longer have to file a tax return
 How to file different categories of ITR forms online Income tax e-filing
 Here are other documents you need to file online ITR Got your Form-16 for FY18?
 10 must have documents to file your tax return
 Know all about how to file ITR FY 2017-18
 Government extends sale of pre-GST goods with stickers of revised price till July 31

NRO deposits to be treated as investment income: AAR
March, 07th 2008
Giving a boost to investments by non-resident Indians, the Authority for Advance Rulings (AAR) has said that non-resident ordinary (NRO) deposits should be treated as investment income and taxed at 20%.

At present, banks consider such deposits as interest income or income from other sources and deduct tax at source at the rate of 30%.

NRO accounts are the same as savings account for resident Indians but are so designated on change of residence. The interest rate for such deposits is at about 9% per annum.

The ruling comes in the case of V Ravi Narayanan, an NRI living in Saudi Arabia who wanted to open an NRO account in HDFC Bank. The AAR held that since the NRO deposit would be made by the applicant with convertible foreign exchange in a banking company which was not a private company, it would be treated as 'foreign exchange asset'. The income through interest earned from the deposit would be treated as investment income under Section 115 C of the Income-Tax Act and would be taxed at 20%.

The authority also said banks paying interest on the NRO deposit of the applicant were required to deduct tax at source at the rate of 20%.

The judgement is, however, on a case basis and experts say it can be appealed in a higher court. An executive with a public sector bank said there would not be much impact on banks. "Our job is only to deduct taxes and pass it on to the government. The rate at which tax is deducted does not really affect us." However, others said this might promote opening of more such NRO deposits.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions