being the salary income of Rs.86,21,402/- & NRE interest income of
Rs.2,77,787/- and added the same in the total ... assessee is hereby brought to tax in India.
Further, NRE interest income of Rs. 2.77.787/- claimed to be
exempt from taxation by the assessee
term deposit receipts. But, none-the-less, their character remained as NRE. Interest on those term deposit receipt was also earned.
2.3 The assessee ... interest accrued thereon cannot be included in the total wealth of the assessee. As already held above, the interest income accrued on the NRE deposits
that assessee filed the returns of income claiming therein interest on FDRs in NRE account amounting ... June, 1999, and allowed the exemption in respect of interest on FDRs in NRE account under Section 10(4) of the Act. Thereafter
exempted salary income from United Nations and interest
on NRE Account at Rs 1,50,78,056.
3. The ld AR further submitted that during ... source, quantum and timing perspective. Secondly,
where such salary income and interest on NRE account are exempt from tax
in India at first place
decided in such appeal. The matter of taxability of interest on
FCNR(B) and NRE SB account with State Bank of India , NRE Branch ... should have known
that, if the account is an NRE account the interest accruals are exempt u/s
10(15)(iv)(fa) . If the account
addition on account of
interest.
13. I have considered rival contentions and found from record that interest
was accrued on NRE/FCNR deposits, which ... which arose till then in claiming exemption in respect of interest
earned on NRE / FCNR deposits / accounts, which continued even after
the return
with PNB to his Non-Resident
External Account (NRE) account with BOI. The petitioner earned interest on
fixed deposits from BOI and UCO Bank ... assessee has received Rs. 56,82,929/- as interest on
the deposits made in the NRE account. The claim of the petitioner is that
such
exemption in respect of the following amounts.
a) NRE receipts;
b) interest from NRE accounts and
c) LIC benefits.
4.It is his further case ... NRE receipts and
NRE interest were omitted to be included. These amounts though excluded from
the taxable income and exempted under Section
explain the taxability of interest, the assessee claimed that the
interest pertains to the FDRS made from NRE fund and therefore ... contending that the funds
of investment was from NRE account, therefore, interest on FDR is
not taxable. The AO noted that the FDRS made
learned AO erred in denying the exemption claimed on
NRE interest to the extent of Rs.9,02,541/- earned out of perpetual
bond without ... assessee had invested in perpetual bonds from NRE account and
the interests earned on the very same bonds were also credited to
the NRE account
