Is interest on nre fixed deposit taxable in india? I am reading a lot of confusing things online. Please clarify.
Unlike NRO fixed deposit, interest on NRE fixed deposit DOES NOT attract any tax. But wait, this is only if the NRI maintains their NRI status as per the Income Tax Act and FEMA regulations.
While NRE fixed deposit is not taxable in India, you may have to pay taxes in the country where you reside. You should check the rules and regulations there and declare your income accordingly to avoid any tax-related hassles.
In case your residency status changes to ‘Indian resident, ‘ you will have to pay taxes as per the Income Tax act.