This may sound like a repeated question yet I would like to be sure on the answer.

I am currently working in US. I do occasional transfer from my US account to my Indian NRE account (ICICI Bank) which I believe is not taxable as per the clause. Also I do have a Home Loan account (with IDBI Bank) in India. Now been at onsite I can afford transferring some additional funds so that I can close my Home Loan as early as feasible.

I usually transfer my monthly EMI's along with some additional cash from my ICICI NRE account to IDBI account. Now the question is, Is the amount transfer to my IDBI account taxable as per the Indian policies?


There are no taxes due if you are transferring funds from one of your own accounts to another of your own accounts. The interest earned on your NRE accounts is not taxable income to you in India, but that interest must be declared as taxable income on your US tax returns (and you must file the appropriate FBAR documents if the total value of the assets held outside the US is US $10K or more at any time of your US tax year. There is no TDS (or there shouldn't be any) on the interest earned in your NRE account. Interest earned in NRO accounts is subject to TDS (Tax Deducted at Source or mandatory withholding in US parlance), is taxable income to you in India (though it may be smaller than the slab and thus escape taxation entirely except that you will need to file a tax return and request a refund of the TDS). That NRO interest is also taxed in the US but you get a credit (or deduction) for taxes paid in India. You can claim the TDS amount as foreign income tax paid, but then the refund must be declared as income in the following year.

  • Just to clarify, the IDBI Account, is this a Home Loan account or a Savings Account? An NRI cannot hold an ordinary savings account. If you hold any, please convert this into NRO.
    – Dheer
    Aug 3 '15 at 3:49

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