One Reply to “Is there any Tax associated with NRE account if person returns back to India?”

  1. 1. As long as you are a Non-Resident you won’t be taxed.

    2. But when you return back & became Resident as per FEMA Act, you have to intimate your Residential status to the bank.

    They will convert your NRE account to Resident Accounts.

    But (some banks) the NRE Fixed Deposit accounts will continue to earn agreed rate of interest till maturity even after conversion.

    Then you will be TAXED as per the Indian Income Tax Act.

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