ET Wealth asks if NRE FD interest becomes taxable after return to India
In short
A reader told ET Wealth they were an NRI until FY2024–25 and became a resident in FY2025–26. They asked if interest on NRE fixed deposits, which mature in FY27, will now be taxable in India.
This matters because tax treatment can change when a person’s residential status changes. The report does not give the answer or cite a ruling.
What the reporting says
An ET Wealth reader asked whether interest on NRE fixed deposits will be taxable in India after changing residential status from NRI to resident in FY2025–26. The reader said they were an NRI until FY2024–25, had invested through an NRE account, and the deposits will mature in FY27. The reporting presents a tax query only and does not state the final tax treatment or any ruling.
Why it matters
The story is a tax question about how changing from NRI to resident status affects interest income from NRE fixed deposits. The key issue is whether the deposits retain their tax-free treatment after the status change, but the available reporting does not provide the answer. It is a reader query rather than a policy announcement or tax order.