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 »
 Companies (Appointment and Qualification of Directors) Sixth Amendment Rules, 2018.
 Easier tax refund regime for exporters in the works
 Income tax on your gold and real estate investments
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases
 How RBI dealt with the crisis amid tensions with FinMin
 Pay tax on this PF account withdrawal Income tax return (ITR) filinga
 Seeks to make amendments (Ninth Amendment, 2018) to the CGST Rules, 2017.
 How govt is dealing with tax evasion, corporate fraud
 How to check income tax return (ITR) status
 Second instalment of advance tax due on 15 September
 Missed the deadline for filing India ITR? Here is what you can do

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