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22 August 2022

India and NRE bank accounts

Enquiries from Indian expats are often complex and from the outset it’s important to ask the right questions. Their circumstances can often be as elaborate as a Bollywood dance routine.

While the Indian tax reporting system is lengthy and detailed, local rules allow for expats to have non-resident external (NRE) bank accounts in the country, where the interest earned is free of Indian tax.

For the expat Indian living in the UK, however, such income must be reported to HMRC and, if certain conditions exist, the DTA between the two countries allows for foreign tax credit relief at the treaty rate of 15%, even though no tax has been paid in India.

If you are concerned about your tax position as an Indian expat in the UK, get in touch. It would be a pleasure to guide you through the challenges and to, most importantly, help bring you up to date with your tax reporting obligations.