Posted on: 10-02-05 02:32:21
Quote:
Orginally posted by dushetty
the govt of india has already introduced a 30 % taxes on interests on fixed deposits. so if we are paying taxes already on NRI deposits in india do we still get taxed on these deposits if we declare them to the canadian govt??
If yes, then where is it best to hold these funds - in india or transfer them to canada ?? to avoid paying double taxes!!
Also could you please advise if it may be worth it to transfer funds into an savings account in jersey??
As far as I know, Govt. of India does not charge any income tax on interest earned on NRE rupee accounts. The 30% interest is charged on interest income on NRO accounts.
In your case if you earned the money in Dubai and remitted to India in your NON RESIDENT EXTERNAL Rupee account then all the interest income on that amount in non-taxable.
In any case if you pay any tax in India on your interest income, you can claim a tax credit for the same in Canada as both countries have tax treaty to avoid double taxation.
This link may help you in getting more information :
http://invest.economictimes.indiatimes.com/question/faqs/NRI.htm
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
I do agree with Mr. Pramod Chopra, though in last year budget, it was proposed to bring interests drawn on NRE or FCNR accounts within the tax network, the proposal was later scrapped by finance ministry during the debate session. Only NRO account is taxable.
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New Guy
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We can always do better!
thank you Mr. Chopra and New guy for your valuable inputs and advise. I shall certainly write further on any other queries on financial issues.
thks once again
