Non-Resident (External) Account

1. My son has been working in Indonesia for over a decade. Now, he's planning to return to India. If he makes a fixed deposit in NR(E) a/c for three years, before becoming an Indian resident, would the interest on that continue to be tax-free till the maturity of the deposit? Ashish Desai, via email The interest on Non-Resident (External) account is fully exempt from income tax, provided, either the account holder is a resident outside India

This article was originally published on August 12, 2003.