https://www.taxtmi.com/caselaws?id=4056 An NRO deposit acquired with convertible foreign exchange in a banking company that is not a private company qualifies as a foreign exchange asset under section 115C, because repatriability is not a statutory condition for that definition. Interest earned on that deposit is income derived from the foreign exchange asset and therefore counts as investment income under section 115C, attracting tax at 20% under section 115E. For the same reason, tax at source on such interest is deductible at 20%, and the higher rate applicable to ordinary income does not apply. en-us Mon, 03 Mar 2008 00:00:00 +0530 Tue, 14 Jun 2011 04:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4056 An NRO deposit acquired with convertible foreign exchange in a banking company that is not a private company qualifies as a foreign exchange asset under section 115C, because repatriability is not a statutory condition for that definition. Interest earned on that deposit is income derived from the foreign exchange asset and therefore counts as investment income under section 115C, attracting tax at 20% under section 115E. For the same reason, tax at source on such interest is deductible at 20%, and the higher rate applicable to ordinary income does not apply. Case-Laws Income Tax Mon, 03 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4056