NRIs Be Carefull..!!
NRIs staying over 60 days in India may be taxed under DTC
New Delhi: More NRIs may fall under the tax net if the Direct Taxes Code (DTC) Bill proposal to impose a levy on their global income if they stay in India for more than 60 days in a year is approved by 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.
Furthermore, in case an NRI resides in India for a period of 365 days or more over a period of four years prior to the assessment year, he is also liable to pay tax on his global income.
The new DTC Bill has proposed to make an NRI liable to pay tax on global income is he resides in India in a particular year for a period or periods amounting to 60 days, down from the existing provision of 182 days in the existing Income Tax Act.
However, the present dispensation for taxation of global income if an NRI resides in India for 365 days or more over a four-year period has been retained in the proposed DTC.
The DTC hopes to plug loopholes with the proposed changes with the aim of preventing tax evasion through this route, said a senior Finance Ministry official.
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.
Commenting on the proposal PwC Executive Director (Tax) Kuldeep Kumar said, "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."
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.
The non-resident would be considered a resident if the threshold limit of stay has been exceeded for the purpose of imposing tax.
In the case of a resident of a non-treaty country, which India has no DTAA with, the tax burden would be higher if he exceeds the threshold limit of stay in India, Kumar said, adding that he has to pay tax on all the global income inIndia as well as the country of residence as per the
prevailing tax laws of that country.
At present, India has comprehensive DTAAs with about 74 countries, including the USA, Singapore, UK, Thailand, South Africa, Saudi Arabia, New Zealand and Australia.
Experts feel that the DTC proposal could be a damper for NRIs visiting India to meet their relatives or for business promotion.
NOT Applicable to NRI's
WRONG INTERPRETATION ...
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.
Read more: http://www.qatarliving.com/node/1320944#comment-1614969#ixzz1159kMyjf
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.
I know buddy, felt pity on self "a poor soul" :(
Victory, There are thousands who are staying more than 60 days a year.
I didn't stayed in India for 60 days in total in Last 10 years :(
This issue was in the news last week. They are aiming the people who are making a fortune and those who are travelling on monthly or weekly basis especially the Indian Business Community. All NRIs were asking for the right for voting and do you know why they agreed? Somebody educated them that they can levy some taxes on us if they pass the law on voting rights for us. That law amendment was not for our benefits. I have been discussing this issue with a friend of mine an ye ar ago when they started discussion on the issue of Votes for NRIs. Now either you stay less than two months in India each year and spend the money in some other countries if you have more leave every year. I am sure most of the NRIs who gets more than two months a year will go to Srilanka, Maldives, Thailand and Singapore to spend their holidays.
But it should not be applicable to the job holders where we are staying out side the country with out love and affection for our families not for the corrupted politicians and government employees.
The corrupted politicians may not be happy with their current savings in Swiss banks.....
Forwarded email?
In this case let cental govt provide us, subsidery on travel tickets and some spending visa charges.
so you are one of them?
or do you want to post it in your group?
have heard abt dis before bt came out as a hoax.pls give link
have heard abt dis before bt came out as a hoax.pls give link
could you pls provide the link...