Good to have a website like investmentyogi. Nice to see that interface is excellent to use.
Very short intro of myself. I am NRI(male) based in US aged about 33 years. I had one question regarding bank interest income.
Is bank interest income taxable at 30.9% for NRIs irrespective of the indian income salary? Let me give a simple example of what my question is
Lets say my indian income salary is 1,20,000. Also interest income earned from fixed bank deposits in savings bank account is 20,000.
So how is my tax calculated?
Is it according to option a) or b) given below?
a) 1,20,000 + 20,000 = 1,40,000 --------- Total income is < 1.6 Lakhs for Male individual < 65 years. NO TAX OWED
b) 1,20,000 --- Salary
but 30.9 %(Tax on NRI) on 20,000 = 6180 --------- Even though total income is < 1.6 Lakhs for Male individual < 65 years i have to pay Rs.6180 as Tax.
In this case, irrespective being in < 1.6 Lakhs bracket, TAX I OWE IS Rs.6180