We accept deposits from NRI on a non-repatriation basis. In case of RBI notification "RBI/2004/179 A.P (DIR Series) Circular No. 89 dated on April 24, 2004", deposits by NRIs with person other than authorised dealers / authorised bank by debit to NRO accounts may continue as hitherto provided that the amount deposited with such entities does not represent inward remittances or transfer from NRE/FCNR (B) account into the NRO account.
The terms and conditions governing the NRI deposits are given under:
Acceptance of deposits can be made only by Indian Rupee through NRO account.
NRI Deposits shall be accepted only through payments made from the depositors NRO a/c in India.
Deposits with funds transferred from NRE or FCNR (B) a/c will not be accepted.
NRI Deposits shall not be accepted by any inward remittance from overseas.
The NRI deposits have given the following declaration:
The amount deposited with Mahindra & Mahindra Financial Services Ltd. represent amount transferred from NRO account. Further, this amount does not represent inward remittance from overseas to NRO account or transfer of fund from NRE/FCNR(B) account to NRO account.
The depositor has to furnish his NRO bank account no. as both the principal and the interest shall be credited to the depositor’s NRO bank a/c only.
The tax will be deducted at the rates prescribed by the income tax law in force from time to time from the interest amount irrespective of the quantum of interest.
INCOME TAX PROVISION RELATING TO FIXED DEPOSITS:
TDS with respect to NRI deposits
- The limit of Rs 5000/- on interest for the purpose of tax is not applicable.
- Declaration u/s 197 in Form 15G/H for non-deduction of tax will not be applicable. However, a lower deduction certificate obtained from the income tax department can be furnished for claiming nil or lower rate of tax.
- Tax rate will be 30.9% as per the provision of section 195 of the Income Tax Act,1961.
- If Double Tax Avoidance Agreement (DTAA) exists with the country of which the investor is a resident, then the applicable tax rate will be lower of DTAA rate or income tax rate. However, to claim the benefit of the DTAA rate, the Tax Residency Certificate will have to be furnished. In the event of non-furnishing of the Tax Residency Certificate, the higher tax rate as per the income tax act will apply. Further, to claim the lower rate as per the DTAA, Indian PAN will also be required otherwise the tax rate will be 30.9% as per the Income Tax Act.
The depositor is requested to furnish details of their Indian and overseas address.
No loan against NRI deposits will be allowed.