More Taxes for NRI’s
Direct Taxes Code (DTC) Bill has proposed to impose a levy on the global income if of NRIs if they stay in India for more than 60 days in a year. This has been approved by the Parliament.
As per the existing Income Tax laws, an NRI is liable to pay tax on global income if he is in India in that year for a period or periods amounting to 182 days. Now, the duration limit has been cut down to 60 days. In addition, the DTC has also removed the ‘Resident Not Ordinarily Resident (RNOR)’ category to simplify the tax laws, the official said. Now, there will be only two categories, ‘Resident’ and ‘Non-Resident’, the official added.
“With this change, a non-resident would be at greater risk of becoming an ordinary citizen and become liable to pay tax in India as the threshold limit has been reduced“, says PwC Executive Director (Tax) Kuldeep Kumar. Further, there would be liability on a resident belonging to a country where the tax rate is lower than India and there is a Double Taxation Avoidance Agreement (DTAA) between both the countries.
At present, India has comprehensive DTAAs with about 74 countries, including the USA, Singapore, UK, Thailand, South Africa, Saudi Arabia, New Zealand and Australia.
The main purpose behind the move is to plug loopholes that led to tax evasion earlier. But, experts predict such a move will repel NRIs from visiting their homeland. NRIs play an important role in Indian economy.
“If the World Bank is correct, every dollar remitted contributes 3 dollars to the GDP growth—which means that NRIs are contributing almost $90 billion to the growth of India’s rural economy…”
— Shekhar Kapoor, the noted film maker, who pursues as much of his dreams overseas as in India. Dissuading them from visiting India might not be such a good idea after all. And on the other hand, maybe such a step was needed.
What do you think???
You may also like to read:
Nigerian Fraud
Yes!!! They are back again!! You might have received such an SMS before, asking about your personal details; providing lucrative deals in return; but have you ever tried to know the truth behind...
Green engineer in our midst
When the whole world is fighting t go green and scientists are bending over their laboratory tables to find new materials to help save energy, India has discovered a green genius in its own land. ...
India outshines China in internet freedom
No doubt that India's domestic corporate sector, supported by the country's rule of law, its democratic processes and comparatively healthy financial system, already has a source of significant com...
Apple iTransparent Mobile Phone-Beyond Imagination
Apple - concept phone On one hand, clear conceptual phones already, so this is not just the first, but on the other, the so-called Window Phone has one impressive feature - its transparent housing ...
Pakistan to free 89 Indian prisoners
Pakistan has decided to set free 89 Indian prisoners, a move that comes less than a week after it released an Indian who had spent 27 years in a Pakistani jail. Gopal Dass crossed over to India...
India the new education hub
India was once the tourist destination with its Taj Mahal and Qutab Minar and such beauties. Today, it is the education hub! India has more than 17000 colleges and 400 universities not counting num...
A penny from your billions sir?
Corporate Social Responsibility aka CSR is a well known term among Indian Companies. The trend though, is yet to catch up among individuals. On an average, Indian companies spend about Rs.300 billi...
The story of the 51 that began 63 yrs ago
On the cusp of India’s independence, 51 companies were incorporated in the country. The history of Indian business is much longer than that of independent India; still, the story of these 51 midnig...
Tax In India
Everyone exceeds the maximum amount which is not chargeable to the income tax is an assesse, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the ...
Whistle in the air – having your own whistle and blowing it too
“Khullam khulla raj karenge hum sab log”. This is what I read recently in Times of India regarding the sudden leaks that have filled the global air. And India’s corridor of power are full of the sa...
This Page is About:
- direct tax code for sailors
Techie freaks invited!!!
Are you a gadget/gaming wizard? Would you like to write on gadgets, gaming, the Internet, software technologies, OSs and the works? Submit a sample of your writing here and if we like it, we will publish it! |
Send your Movie Reviews
 Watched a movie lately? Tell us whether we should watch it or just forget about it!Send in your Movie Reviews to theindianfusion@aglasem.com or Submit Here |
Nobody has mentioned about the exempted categories at all. Look at the text of the bill carefully.4. (1) An individual shall be resident in India in any financial year, if he is in India—
(a) for a period, or periods, amounting in all to one hundred and eighty-two days
or more in that year; or
(b) for a period, or periods, amounting in all to—
(i) sixty days or more in that year; and
(ii) three hundred and sixty-five days or more within the four years immediately preceding that year.
(2) The provisions of clause (b) of sub-section (1) shall not apply in respect of an
individual who is—
(a) a citizen of India and who leaves India in that year as a member of the crew of an Indian ship; or
(b) a citizen of India and who leaves India in that year for the purposes of employment outside India.
It clearly exempts sailors and persons who go out of the country for employment purposes. The analysts have goofed up in their interpretations.
Saumitra Talukdar
September 30, 2010 at 4:44 pm