rlmpavsm
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RE: Indian NRO interest income above £2000
Dear HMRC Team, Thanks for your revert. I went through the "Foreign income page". While i got clarity on some of the point, the following aspect is still not clear, can you pls help * Is NRO income eligible for tax sparing clause (Wherein i can deduct 15% straight away, irrespective of whether Indian government has deducted tax or not) Thanks Warm Regards, rlmpavsm -
Indian NRO interest income above £2000
I am an Indian National; and for the last 6 years a UK resident. I hold a "Non-Resident Ordinary (NRO)" savings account in India and have an interest income of around £5000. I am a non-domicile in the UK and am not planning to repatriate this money to the UK at any time in the future. Here in UK I have a PAYE income from my employer and I am in the basic tax slab of 20%. In India, the first £4000 of this NRO interest income is exempted and the rest (£1000 ) is considered taxable income in India and hence i paid tax for the rest of the money. I have the following query 1) How much of my foreign income should i show in my UK Self assessment tax return, full £5000 or only £1000 (which is considered taxable income in India) 2) If in case i have to show full £5000, will i get tax exemption for the first £2000 ? Because i was told that HMRC exempts tax from the foreign income of up to £2000 3) If in case i have to show full £5000 and i won't get the exemption for the first £2000; will i be able to at least claim the foreign tax credit for the £4000 exemption provided by India, that will allow me to claim 15% tax credit for this portion of Income Looking forward to your kind clarification Thanks, Warm Regards, rlmpavsm