The Economic Times

FCNR FD interest rates: SBI vs PNB vs HDFC Bank vs ICICI Bank - which gives you best rates; eligibility and taxation on interest explained

FCNR interest remains exempt from tax as long as the depositor qualifies as an NRI or resident but RNOR under Section 10(15)(iv)(fa) of the Act. Once the individual becomes a resident and Ordinarily Resident (ROR), the FCNR interest becomes taxable in India from that date, even if the deposit was opened earlier, Sehgal explains.