NRE Interest
Where do we report the interest income earned from NRE account.
1
11
aCsA_2zmGr3PKzacfA8pyY
06/29/09 9:15am PDT
Viewed by asker 06/30/09 8:04am PDT
Viewed by asker 06/30/09 8:04am PDT
2 Replies
peterhawaii
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06/29/09 11:02am PDT
Best Answer - Chosen by the Community
Non Resident External (NRE) Savings Account is meant for Indians Residing Abroad.
In their brochures under tax exemptions, they say: "Tax Exemptions on Interest earned on an NRE Account (under clause 4(ii) of Section 10 of the income Tax Act 1961). Likewise, balances held in suchaccounts are are also exempt from Wealth Tax (in termsof Section 6(ii) of the Wealth Tax Act 1957).
Please Note that the above exemptions are available only for an NRE Acount held by an individual and not for those maintained by OCBs (Overseas Company Bodies)."
I would think the Form 1099 INT or facsimile Form 1099 INT would provide this information.
For Form 1099R, report the information from the Intertest on the interest income smart worksheet Pro Series uses, in the same boxes as the Form1099 Int or facsimile Form1099 Int. The correct totals should then appear on Line 9 a and Line9 b of Form 1040 NR. I am not sure what pages Lacerte uses, but this should help.
PhoebeRoberts
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06/29/09 7:42pm PDT
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Interest income goes in Screen 11.
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