Interest on your NRE accounts/deposits and FCNR deposits is fully exempt from Indian tax while you are a non-resident — Income-tax Act 2025 (old Section 10(4)/10(15)). Often the single biggest tax-free lever for an NRI.
The exemption runs only while you qualify as a non-resident (or RNOR) under FEMA/Income-tax residence rules. On returning to India permanently, convert NRE to a Resident Foreign Currency (RFC) account — interest then generally becomes taxable once you are a resident, though RNOR status can extend tax-free treatment for 2–3 years.
NRO account interest is taxable and suffers TDS (up to ~30%). Keep foreign earnings in NRE/FCNR, and use NRO only for India-source income (rent, dividends) — then trim its TDS with a lower-TDS certificate.
Every NRI parking savings in India — structure deposits as NRE/FCNR, not NRO, for tax-free, repatriable returns.
We handle residential-status planning, DTAA relief, lower-TDS certificates and NRI property sales end-to-end.
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