Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: form 3cd :: articles on VAT and GST in India :: list of goods taxed at 4% :: empanelment :: TDS :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT RATES :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ACCOUNTING STANDARD
 
 
News Headlines »
 Tax Return Preparer (Amendment) Scheme, 2018
 Tax-saving for young earners simplified
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)

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