Invest In India

The Finance Minister has announced an increase in income tax exemption of Rs 10,000. This includes the Indian citizens as well as the NRIs. He also announced hike in Rs15, 000 for the senior citizens. Over the world-wide income of the NRIs the government has imposed 5% income tax on Non Resident Indians (NRIs). To avoid the double taxation the income that has been already taxed in India kept out of the purview.

For this 5% tax there would no benefits of the double taxation be available. This means that if you are even paying the tax on your income in a country with which India has the agreement of double taxation, then there benefits would not be allowed against the 5% tax. The NRIs and all the Indians who are holding the Indian Passport and have been living out of the country for more than 180 days are under this requirement.

The proof of the income would have to be submitted in the form of employer, foreign tax fillings etc. As a data sharing initiative on the terror prevention measures, the government of India is also coordinating with the Australia, America, Europe, UAE and the other countries for collecting the Income data of its citizens. This all is done as bringing in the compulsory participation in the development of India from NRIs.

This shows that the NRIs can not continue to retain their citizenship of India without paying taxes in India. It is possible that this may not be the favorable in the views of NRIs who are already bringing the substantial FOREX in the form of investments and the remittances. This caused a lot of heart burn for the outside residing Indian communities and this move is expected to generate the tax collection of approximately 10 million INR for the government this year.

The Finance Minister has scrapped the FBT, allowances and the tax on perks that are offered by the companies. Besides the budget has done way with the 10% surcharge on the personal income tax over the income of over Rs 10 lakh.