New Delhi, Feb 1: The budget is a little more demanding of the non-resident Indian. Firstly, to be categorized a non-resident, an Indian now has to stay abroad for 240 days, against 182 previously. In other words, an Indian national, to claim the non-resident status, can’t stay in India for 120 days or more in a year.
“We've made changes in Income Tax Act where if an Indian citizen stays out of the country for more than 182 days, he becomes non-resident,” said Revenue Secy Ajay Bhushan Pandey. “Now in order to become non-resident, he has to stay out of the country for 240 days.”
The second rule is more deadly: a non-resident Indian, who is not taxed in the foreign country, will become taxable in India.
“If any Indian citizen is not a resident of any country in the world, he'll be deemed to be a resident of India and his worldwide income will be taxed,” said Pandey.
"It's a very big disadvantage for Indians residing overseas only to save on tax," said Dinesh Kanabar of Dhruva Advisors. He expects that many Indians stay abroad in countries, where the income tax is low or nil such as Dubai. Now they will be taxed in India if they are in the income tax bracket.
For Indians, finance minister Nirmala Sitharaman revised income tax rats and proposed new tax slabs.
The new income tax rates will, however, not allow exemptions under Section 80C. Home loan exemption, insurance exemptions, the standard deduction will also not stay under the regime.
"The new tax regime will be optional and the taxpayers will be given the choice to either remain in the old regime with exemptions and deductions or opt for the new reduced tax rate without those exemptions," Sitharaman said while unveiling Budget.
Taking a swipe at Modi for failing to bring back black money and for implementing demonetisation, Siddaramaiah termed the Modi government the most corrupt one. “Demonetisation is a big failure. More than 100 people have died trying to withdraw their own money standing in queues (in front of banks). Congress will launch a massive movement against demonetisation,” he said.
Comments
Do not call Note bandi as a failure .. It is required to check the bloody corrupt politicians .....Instead of talking in the air collect the information on black money of Modi or BJP leaders and pass it on IT officials , and make it public...
It is impotent Cong which brought Modi to such a position .... You reap what you sow.....If your previous cong govts were quick to take actions against the goondas of sangh Parivar in earlier days, we would not have seen such days ..... NO USE OF CRYING ON SPLIT MILK ....
hobalt watch yellintu siddu, ninu corrupt alva?
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