FCNR scheme: Withholding tax fear haunts US, Singapore NRIs

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Non-resident Indians residing in Singapore and the United States are expressing significant concerns over withholding taxes. These taxes threaten to diminish their net returns from leveraging FCNR deposit schemes. For instance, borrowing from Indian banks' GIFT City branches triggers Singapore withholding tax, while US-resident NRIs encounter elevated withholding taxes on loan interest payments. Moreover, US tax regulations mandate the reporting of foreign income and assets.