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Interest On NSCS Is Completely Exempt From Income Tax Under Section 10(4B)

[ The Incomes of an NRI Completely Exempt from Income Tax ]

A citizen of India or a person of Indian origin who is a non-resident is not liable to any income tax in India on any income from interest on such savings certificates issued before the 1st. day of June, 2002 by the Central Government which may be specified by notification in the Official Gazette. Of course, it is necessary that the non-resident should have subscribed to such certificates in convertible foreign exchange remitted from a country outside India in accordance with the provisions of the Foreign Exchange Management Act 1999, and any rules made there under. For the purpose of this clause a person shall be deemed to be of Indian origin if he or either of his parents or any of his grand parents was born in India. Convertible foreign exchange for the purpose of this clause means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act 1999, and any rules made there under. National Savings Certificates (VI and VII Series) which enjoy a higher rate of interest for non-residents are such certificates which have been so notified under FERA. Hence, interest earned on 6 year National Savings Certificates (VI and VII Series) would be completely exempt from income tax in the case of non-resident Indians.
 
The Incomes of an NRI Completely Exempt from Income Tax !
1. Interest On Non-Resident (External) Account Is Fully Exempt From Income Tax
2. Interest On NSCS Is Completely Exempt From Income Tax Under Section 10(4B)
3. Remuneration Of Non-Citizens Is Exempt From Income Tax
4. Income Of Certain Venture Capital Undertakings Section 10 (23FB)
5. Other Exempted Incomes
6. Income in Special Economic Zones, 100% EOUs etc.

More... Topics !..

 

Tax Guide for NRI - Tax Planning, Tax Saving, Investment Guidance for Non-Resident Indians !

1. Basic Aspects Of Tax Planning For NRIs
2. How an NRI can Avoid Clubbing of his Incomes and Wealth with that of his Spouse and Children
3. The Incomes of an NRI completely Exempt from Income Tax
4. Capital Gain of an NRI could be Completely Exempt from Income Tax
5. Items completely Exempt from Wealth Tax for an NRI
6. Special Procedure of Assessment regarding Income of an NRI from Foreign Exchange Assets
7. Deductions Allowed to NRIs in the Computation of Total Income and Tax Payable
8. Procedure for the Filing of Income Tax and Wealth Tax Returns, Assessment, and Refunds
9. Gifts by NRIs to Relatives and Friends can be made fully Exempt from Gift Tax
10. FEMA and NRIs Preliminary Aspects Analysed
11. Acquisition and Transfer of Immovable Property in India by NRIs and FEMA
12. Permissible and Prohibited Current Account Transactions in Case of NRI
13. Investment In Shares, Securities, Units And Other Activities, etc. by an NRI in India
14. Deposits in India by an NRI
15. RFC account of a Returning NRI and Investment Abroad
   
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