Hi,
I have been a resident in UK since 10 years during which I have been employed full time and have never been out of the UK for more than 30 days in any given financial / calender year.
I have recently opened 2 types of bank accounts in Indian banks:
1. Non Resident External (NRE) savings account - Indian currency account, only for overseas income to be held in Indian currency; interest not taxed in India.
2. Non Resident Ordinary (NRO) savings account - Indian currency account for income generated in India or money transferred from Indian accounts; interest taxed in India, tax deducted at source.
I have also opened the following Fixed / Term deposit accounts:
3.. Non Resident Ordinary (NRO) fixed deposit - Indian currency account, interest taxed in India, tax deducted at source.
All monies held (principal of fixed deposit / transfers from UK into NRE / transfers from Indian accounts into NRO / gifts into NRO bank account / interest earned) in all these mentioned types of accounts have remained in the respective accounts and have not been transferred to UK at anytime.
I would like to understand the my UK tax liability due to money held and interest earned in the above mentioned accounts / deposits.
Questions:
1. Do I need to declare these accounts (NRO Savings/NRO Fixed deposits) or interest earnings in the Income tax return?
2. Is the interest earned in NRO accounts (which is taxed at source in India) taxable in the UK?
3. Since interest earned on NRE account is not taxed in India, and the money has been transferred from my UK account, it must be declared in the UK income tax return - just as I declare interest earned from by UK bank accounts. Is that correct?
4. I was told by an accountant, whom I have spoken to on the phone only, that interest <£2000 in a year need to be declared. Is that correct?
India and UK have Double Tax Avoidance agreement in force, though I do not know if it affects me or how.
Thanks in advance to anyone who help answer the queries and provide guidance through this forum.
regards
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch