UK tax on Indian interest income

It is very common among the UK’s Indian community to have cash investments in India. Those newly arriving from India to live and work in the UK as well as those who have lived here for generations are widely referred to as non-resident Indians (NRIs). This does not correspond to formal citizenship in India Indian passport holding or Indian domicile.

Misconceptions

NRIs can benefit from savings and investment products in India geared specifically to their non-residence status. For simplicity here we focus on non-resident external (NRE) accounts which have always tended to offer higher rates of interest than those on offer to local residents there. This made the simple fixed term deposits attractive. Investors typically do not have private banking nor wealth management relationships with the banks in India since historically NRIs have been able to secure these accounts by simply walking into local bank branches or through correspondence....