%20(1).jpg)
To facilitate some control on those who exploit residency status rules to avoid paying income tax in India, changes were proposed to the law in the Budget 2020. The Finance Bill 2020 has proposed some changes to the NRI Income Tax implications:
Residential Status
The rules for Indian citizens to claim NRI status have been tightened from staying 182 days abroad to 240 days now. As earlier, a person who stays aboard for more than 182 days had earned numerous tax reliefs in India. This will mean that NRIs or a PIO (persons of Indian origin) with families in India will have to plan their visits to the country accordingly, to avoid losing the NRI status and pay taxes.
Stateless Citizens
The Finance Bill 2020 further proposed that residential status under the Income Tax Act will be imposed on individuals who are not paying taxes in any jurisdiction, irrespective of how long they stay in India during a year. They will have to disclose theiThe Finance Bill 2020 and NRI Income Tax implications:The Finance Bill 2020 and NRI Income Tax implications:r foreign assets. However, the Finance Ministry insisted that also said that there was no intention to impose taxes on income of non-resident Indians earned abroad.
“Not Ordinarily Resident” Status
Presently, an individual is not ordinarily resident for Income Tax purposes if he has been an NRI in nine out of the 10 previous years preceding that year, or has during the 7 previous years preceding that year been in India for a period of, or periods amounting in all to, 729 days or less. The Finance Bill has relaxed the applicability of “not ordinarily resident” status for Income Tax purposes. Now, if the individual has been a non-resident in India in seven out of ten previous years preceding that year, he won’t be considered “not ordinarily resident” in India.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We Strongly recommend you to seek professional guidance pertaining to your query or doubt.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
2024 NRI Club™ © All Rights Reserved.