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I had invested in KVP (kisan vikas patra) around 2004 and they are soon going to mature.
I am an NRI right now and wondering where can I deposit the maturity amount.
Ideally I would like to invest the money to buy an apartment.
Do I have to open a NRO account to deposit this? Will the bank deduct TDS and on the whole amount?
Bank won't deduct any TDS on KVP amount. KVP money cannot be repatriated and hence will be required to be deposited in an NRO account. If you don't have the NRO account but have had an savings account than, your existing savings account will be required to be converted into an NRO account, further to which you can deposit the funds in the account.
Oh cool. Thank you.
Then i can just open a NRO account and deposit money in there.
Just curious, how come there is no tax on the interest earned on KVP?
Quote:
Originally Posted by Rahul
Nevermind, found the answer. Tax is payable on the interest earned however no TDS.
Quote:
Originally Posted by sunny23m
The interest earned on KVP is taxable in the same manner as interest income earned on bank FD. The KVP holder is not required to pay TDS (tax deducted at source) unlike a bank FD where interest income of Rs 10,000 or more attracts TDS.
What is the difference between NRE and NRO accounts?
- NRE Account credits are funds deposited from out of India in permitted foreign currencies.Quote:
Originally Posted by Shrikant_Inturi
- NRO Account permits credit of any legitimate dues in India of the account holder.