New residency rules can be taxing for NRIs stuck in India amid lockdown
4 years, 8 months ago

New residency rules can be taxing for NRIs stuck in India amid lockdown

Live Mint  

It’s been 41 days since the lockdown was announced in India and flight operations were suspended. If the lockdown gets extended or international travel ban does not get lifted in India or in the country NRI wants to travel, in such a scenario some of them may qualify the criteria of being considered as resident for tax purposes, thus facing issues of dual tax residence and citizenship. However, experts say that the number of days an NRI stays in a financial year is not the only criteria to ascertain tax residency status. So given the additional criteria, very few NRIs will get impacted because of the new rules, even if the lockdown gets extend beyond 120 days in the current financial year. However, an NRI, whose taxable income exceeds ₹15 lakh and stays in India for 120 days or more in the previous year and had also stayed 365 days or more in the preceding four years, will be treated as a resident individual for income tax purposes.

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History of this topic

NRI Taxation Explained: How India taxes non-resident Indians
1 month, 1 week ago

NRI Taxation Explained: How India taxes non-resident Indians

Live Mint  

An Indian-origin individual living outside India is termed a Non-Resident Indian. Regulations defining NRI status Two primary legislations outline the rules applicable to NRIs in India: Income Tax Act, 1961: Specifies the tax obligations of NRIs. You will be classified as resident but not ordinarily resident for a particular year if you satisfy one of the following conditions: If he/she …

What are the latest rules for NRI taxation in India?
1 year, 10 months ago

What are the latest rules for NRI taxation in India?

Live Mint  

These conditions include: physical presence in India during the relevant FY is 182 days or more; or physical presence in India during the relevant FY is 60 days or more and 365 days or more in the preceding four FYs. an individual, being a citizen of India, having total income, other than income from foreign sources, exceeding ₹15 lakh during …

Returning from overseas? This is how taxation works in case of NRIs
2 years, 2 months ago

Returning from overseas? This is how taxation works in case of NRIs

Live Mint  

Many individuals may decide to return to their home country after developing a good professional career abroad. When you return to India, it won't be simple to say goodbye to your NRI status and the associated tax advantages. Depending on how much of the year they spend in India, NRIs who return may permanently lose their NRI status. FEMA and …

Income arising in India is taxable for NRIs
3 years, 11 months ago

Income arising in India is taxable for NRIs

Live Mint  

An employee is on work deputation in the UK. When the employee returns to India and his residency in India is more than 182 days in a financial year, does he need to pay tax on the income earned only in India? You must meet any of the following conditions and both the additional conditions: Conditions: a) you are in …

Moving back to India? What are the key tax implications?
4 years, 1 month ago

Moving back to India? What are the key tax implications?

Live Mint  

The current pandemic has triggered a significant move back to India by Non-Resident Indians. Take an example of an individual who left his job overseas and came back to India permanently during the current year; he shall be considered as resident as per the Foreign Exchange Management Act from his date of move to India, even though he was not …

Stranded NRIs wary of tax implications
4 years, 3 months ago

Stranded NRIs wary of tax implications

Live Mint  

Non-resident Indians stuck in the country because of the pandemic are seeking clarifications on the tax implications of their stay. A change in residency status may result in increased tax liability for some NRIs who have been forced to stay on in India and who seek clarifications from the tax department. “As per Section 6 of the Income Tax Act, …

Amendments in residential status in 2020
4 years, 3 months ago

Amendments in residential status in 2020

Live Mint  

The scope of taxability of an individual taxpayer is determined based on his/her residential status in India during the relevant financial year. For FY 2019-2020, the additional conditions required for an individual to be considered as ROR are: Individual should be: present in India for more than 729 days during preceding seven FYs, and Resident in India for two or …

COVID-19 : Centre Grants Relaxations To NRIs On 'Residential Status' Under Income Tax Act For FY 2019-20
4 years, 8 months ago

COVID-19 : Centre Grants Relaxations To NRIs On 'Residential Status' Under Income Tax Act For FY 2019-20

Live Law  

Taking note of the COVID-19 lockdown, the Central Government has granted relaxations to the criteria for determining 'residential status' under Section 6 of the Income Tax Act,1961, for the Financial Year 2019-20.As per Section 6 of Income Tax Act, stay for 182 days or more in India during a financial year will make an individual 'resident in India' for the …

Stranded NRIs could be in for tax trouble
4 years, 8 months ago

Stranded NRIs could be in for tax trouble

Live Mint  

It’s been 44 days since the lockdown was announced in India and flight operations were suspended. Also, the new rule of lower number of days is only applicable to those NRIs whose total income in India exceeds ₹15 lakh during a financial year. So given the additional criteria, very few NRIs will get impacted because of the new rules, even …

NRI Tax : Finance Ministry Issues Clarifications On Proposals In Budget 2020
4 years, 11 months ago

NRI Tax : Finance Ministry Issues Clarifications On Proposals In Budget 2020

Live Law  

In view of the confusion and controversy over the proposals in the Union Budget regarding levy of tax on Non-Resident Indians, the Ministry of Finance on Sunday evening issued a clarification.The Finance Bill 2020 proposed to amend Section 6 of the Income Tax Act 1961 to reduce the period of stay in India as 120 days from 182 days for …

Day after Budget, Centre clarifies proposed tax on NRIs, says it will not hurt bonafide workers abroad
4 years, 11 months ago

Day after Budget, Centre clarifies proposed tax on NRIs, says it will not hurt bonafide workers abroad

Firstpost  

The government on Sunday issued a clarification on the new definition of NRI mentioned in the Budget presented by Nirmala Sitharaman. New Delhi: The government on Sunday issued a clarification on the new definition of NRI, stating that “in case of an Indian citizen, who becomes deemed resident of India under this proposed provision shall not be taxed in the …

Budget 2020: Non-taxpaying NRIs to be taxed in India
4 years, 11 months ago

Budget 2020: Non-taxpaying NRIs to be taxed in India

India Today  

Non-resident Indians not paying taxes in any foreign country will now be taxed in India, the Union Budget for 2020-21 has proposed. Tightening the residency provisions, the Budget also proposed to reduce the period of stay in India to 120 days from 182 days earlier for persons of Indian origin to be categorised as non-resident Indians. Amending Section 6 of …

Union Budget 2020: NRIs not paying taxes elsewhere will now be taxed in India
4 years, 11 months ago

Union Budget 2020: NRIs not paying taxes elsewhere will now be taxed in India

India TV News  

Non-resident Indians not paying taxes in any foreign country will now be taxed in India, the Union Budget for 2020-21 has proposed. The Union Budget 2020 has now proposed to introduce a deeming provision that every Indian citizen who is not liable to tax in any other country, by virtue of his domicile or residence, shall be deemed as a …

New tax regime offers hardly any relief
4 years, 11 months ago

New tax regime offers hardly any relief

Live Mint  

Presenting her second budget, the finance minister emphasized on a simplified tax regime that would seemingly make chartered accountants go out of jobs. But if the reactions on Twitter are anything to go by, the new tax regime will, in fact, justify a higher fee for CAs to help you understand if you are really better off under the new …

NRIs who are not residents of any country will be taxed in India
4 years, 11 months ago

NRIs who are not residents of any country will be taxed in India

Op India  

Clearing the air about new tax regime for NRIs, the government has said that only those NRIs will be taxed in India who are not residents of any other country, but still enjoy NRI status as they stay out of India for enough duration in a year that makes them eligible to become NRIs. The budget for the financial year …

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