Can you help me understand if NRO fd is taxable or not?
Hi,
Yes NRO fixed deposit is taxable. My brother has an FD in HDFC Bank which he opened with his NRO savings account. The applicable TDS on NRO FD interest is 30% + surcharge + 4% health and education cess.
So lets say your FD earns an interest of up to Rs. 50 lakhs, the applicable tax would be 31.2%. Assuming your interest is Rs. 387500, you are liable to pay TDS of Rs. 116250 + Rs. 4650 (4% cess on 116250). Therefore, total tax comes up to Rs. 120900.
I hope this clarifies everything about your query: Is NRO fixed deposit taxable or not.