Home |Tax returns filing | My daughter and I live in Malaysia and we have a Non-Resident External (NRE) account in India. I will return India in April. I have an FD and I believe the interest will be taxable if I become a resident in India. Can I transfer the FD to my daughter’s account?

My daughter and I live in Malaysia and we have a Non-Resident External (NRE) account in India. I will return India in April. I have an FD and I believe the interest will be taxable if I become a resident in India. Can I transfer the FD to my daughter’s account?

Answer Notify Me - 1 Notifying - 2



Meghna Meghna
Answered on February 06,2020

After returning to India for good, you are required to intimate your bank so that your Non-Resident Accounts can be converted to Resident Accounts. While interest from NRE( Non-Resident External) accounts is exempt from tax, this exemption is available until you are outside India. Once you return for good and your accounts are converted to resident accounts, the interest earned is taxable.

Any gifts of money made to your daughter will be exempt from tax since she is a specified relative as per the Income Tax Act. Also, if she is a major (above 18 years), any interest earned by her from investing this gift receipt shall not be clubbed with your income.

Clap Clap 8
Share Share Answer Share Share
Views 116 views
tesz.in
Hey , can you help?
Answer this question

    • Related Questions