1

If I send Australian Dollar to FCNR in India, which I have already paid tax here, then when I bring back the same amount to Australia in a few years, do I have to pay tax again here?

2

In general, irrespective of the jurisdiction, you only pay income tax on income; money that you already have does not attract tax.

My understanding is that the interest earned is exempt from Indian tax, however, as an Australian tax resident the interest will be assessable income for your Australian tax.

So you will not pay tax on the principal but will need to pay tax on the interest in the year it is earned.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.