Mumbai: A new Non-Resident Ordinary (NRO) fixed deposit was launched by ICICI Bank to attract more NRI customers. This fixed deposit will help the NRIs to maximize their post tax yield on NRO fixed deposits.

This fixed deposit scheme called the NRO Fixed Deposit Plus, will take advantage of the double taxation avoidance agreement and the customers can get the benefits of a concessional rate tax deduction at source and save more money. Initially, Non-Resident Indians from US, UK, Canada and Singapore will be able to avail this NRO fixed deposit plus facility.

Ordinary NRO fixed deposits are not eligible for the tax benefits enjoyed by by non resident external or foreign currency non resident deposits. As per the current regulations, tax is deducted at source on the interest earned on NRO fixed deposits. The tax is deducted at source at the rate of 30 percent plus cess at a rate of 2 percent. In addition to it, if the taxable income exceeds Rs.10 lakh, a surcharge is also levied at the rate of 10 percent.