Interest income of non-resident Indians – Tax problems of non-resident Indians repatriated from Kuwait
1. By Circular No. 590, dated 30-1-1991 (see Clarification 1), Indian nationals normally resident in Kuwait who were forced to return to India because of the Iraqi invasion, were made eligible for exemption under section 10(4)(ii ) of the Income-tax Act in respect of their NRE/FCNR accounts maintained by them up to 31st March, 1991.
2. With the cessation of hostilities in the Gulf and with a view to facilitate the Kuwait NRIs to return to Kuwait, RBI has now decided to permit them to continue to maintain their NRE/FCNR accounts in banks in India and to maintain their foreign currency accounts and assets abroad for a further period up to 30th June, 1991.
3. Taking into account the abovementioned factors, it is clarified that individuals normally resident in Kuwait and returning to India after 2nd August, 1990 would now be eligible for exemption under section 10(4)(ii) of the Income-tax Act in respect of such accounts maintained up to 30th June, 1991.
Circular : No. 604, dated 11-6-1991.