[TNSEN]

Assessee invested in fixed deposit with SBI NRE account in US$ out of income from foreign currency when his status was NRI in earlier year. Now his status is resident. Whether interest accrued on above F.D. in US$ is taxable for the current year?

[AtlantaTaxExpert]

If the taxpayer is a NON-resident alien, then the foreign interest is NOT taxable, as only income earned WITHIN the U.S. borders is subject to income taxes.

If the taxpayer is a resident alien, then ALL world-wide income is subject to U.S. income tax.