interest rate for nre fixed deposit in hdfc bank

Please reply as soon as possible I only have one day to submit the return.After the Reserve Bank of India ( RBI) recently allowed banks to accept new FCNR(B) NRE deposits from non-resident Indians (NRIs) without interest rate limits, several lenders raised their interest rate offerings to attract foreign funds. Is the tax credit relief of 15% available if the Tax is not paid to the Indian Gov for the NRE account and the account is less than 10 years old? NRE interest income should be declared within an in individuals UK self-assessment return. UK tax relief not exceeding 15% is available for ten years from the opening date of the NRE account per Article 24(5) UK-India Double Tax Convention. Under the UK-India Double Tax Convention, NRE account interest taxable in the UK can receive credit not exceeding 15% for Indian tax even if this has not been paid.

(UK-India DTC notes page HMRC’s Double Taxation Relief Manual DT9553).

Under the UK-India Double Tax Convention, NRE account interest taxable in the UK can receive credit for Indian tax even if this has not been paid as the credit relief amount is calculated through the tax spared mechanism, which deems Indian tax to have been paid at the marginal rates applicable there. Could you please confirm the advice is still correct?Īlthough NRE interest income is not taxable in India NRE interest income has often been mistaken as non-taxable in the UK this is incorrect, UK tax residents are subject to UK taxation on their worldwide income and gains subject to any remittance basis claims.

I have received the following advice from other HMRC Admin regarding tax credit relief(15%) available even if the tax is not paid to the Indian Tax authorities at all.

Interest rate for nre fixed deposit in hdfc bank