I had opened an NRE FD of Rs. 300,000/- in the bank in the month of August, 2016. My status changed to resident in 1st January., 2017.I asked Bank to convert my NRE FD into resident FD and changed the principal amount to Rs. 305000- (including the interest earned upto quarter ending Sept., 2016 ). For subsequent months TDS @ 10% has been deducted from the interest on the FD. My question is whether the interest earned upto Sept., 2016 on NRE FD and merged with the principal amount is taxable ?
Jan. 08, 2018