I am resident in UK and have a NRE account where I keep depositing my earnings (for which I have already paid tax in UK)

From NRE account, I can repatriate money. I.E. get it converted to pounds transfer to UK bank account. The NRE account is with YES bank.

So if this gets deposited into my UK account, Do I need to pay tax on
1. Interest earned over my saving only
2. Both interest and saving again ?

1 Answer 1


Interest earned over my saving only

As you are Tax resident in UK, UK taxes Global income. So the interest earned in India is taxable. Further this is taxable when the interest was paid to you in India and it is not relevant whether you kept the funds in India or repatriated to UK.

It is not clear in your question as to when the interest was credited to your Indian account. If its been for few years, you are in breach of the UK tax regulation. Consult a tax advisor how this can be corrected.

If it is for this year, pay taxes as per normal tax brackets.

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