hi I had few FD in IDFC bank from 2018 and getting matured in 2028. From 2018 to 2024 i was in india and paying tax. From 2024 to 2026 i became NRi and again from 2026 i will become resident indian (From apr 2026). Hence my doubt is the maturity amount of this fixed deposit i will receive in 2028. Hence would i be paying income tax on the full interest gained in 2028?
When u opened the FD with IDFC in 2018, all these FDs would be termed as Resident deposit and will be liable to tax as per laws. When u became a NRI, the existing deposits will become NRO deposits and taxable no change inspite of you becoming a NRI.
In 2026 if you are going to become a resident, the status quo remain unchanged. You will need to show the interest received as income. I am sure the bank would be deducting TDS until and unless you have not signed the 15G form.
In case if you have opened a NRE deposit after 2024 once u become a NRI, these deposits will remain tax free provided the FD was opened from income from abroad. In case you have NRE deposits, you need to advise your banker that you are now a resident and they will convert the status. No need to close these deposits and re open but it will be taxable since the date you advise you are a resident.
The best person to ask @Quicko
So only after i convert to to normal savings account again, these FDs will become taxable
resident account and NRO account are taxed normally.
NRE deposits in case you opened them and routed the funds through your NRE account is not taxed and tax liability will kick in only when you become resident ie once you come back after April 2026
Remember, if you did not open NRE sb once you became a NRI and funded the NRO/Savings account from overseas income, even then you will be taxed.