[midfa]

I have nro fd interest 400000 IRS yearly there is any tax

[wnhough]

QUOTE," intrest from nro account is taXABLE ?"--- It depends on your immigration status; As either a US citizen or a resident alien, you are taxed on both your US and World wide income including interest income( incl. NRO account). If you accumulate more than ten dollars in interest during the tax year, you will receive a Form 1099-INT from each institution( in the US) paying you interest.So, if you are required to file a tax return, you should report all income from all sources( from both US source and World wide) whether you receive a corresponding form or not. So, regardless of whether you receive the form 1099-INT, you should report all of you're the interest income. Also, you MUST file form Form TD F 90-22, if you have a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.

However, if you are neither a US citizen nor a US resident alien, then You do not need to report the interest from your NRO account;simple bank interest and interest on CD's are not considered earned income for non-resident aliens, and therefore are not reportable to the IRS.

[MukatA]

A U.S. citizen or resident must report worldwide income even when he or she does not live in the U.S. If your total worldwide income exceeds the filing requirement, a U.S. citizen or resident must file your U.S. tax return.
Your India bank interest (NRO account) is taxable in U.S. if you are a U.S. citizen or resident.
Another filing requirement is Form TD F 90-22.1. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income