New Delhi: The rustic’s Earnings Secretary, Ajay Bhushan Pandey, on Saturday mentioned an Indian now has to stick in another country for 240 days, as in opposition to the 182 in the past, to be categorized as a non-resident. In different phrases, an Indian nationwide who needs to assert the non-resident standing can not keep within the nation for 120 days, or extra, in a 12 months.
Pandey’s commentary got here at a press briefing on Saturday after Finance Minister Nirmala Sitharaman introduced the Union Funds in Parliament.
“Now we have made adjustments within the Source of revenue Tax Act the place, if an Indian citizen remains in another country for greater than 182 days, he turns into a non-resident,” mentioned Pandey. “Now, to be able to change into a non-resident, he has to stick in another country for 240 days.”
The second one rule is extra pertinent: a non-resident Indian who isn’t taxed within the overseas nation the place he/she lives might be taxed in India.
“If any Indian citizen isn’t a resident of any nation on this planet, he’ll be deemed to be a resident of India and his international source of revenue might be taxed,” mentioned Pandey.
“It is a very giant downside for Indians living out of the country simplest to avoid wasting on tax,” mentioned Dinesh Kanabar of Dhruva Advisors. He expects that many Indians are living in another country in international locations, reminiscent of Dubai, the place the source of revenue tax is low or nil. Now they’re going to be taxed in India in the event that they fall within the source of revenue tax bracket.
For Indians, Sitharaman revised source of revenue tax charges and proposed new tax labs.
The brand new charges will, alternatively, no longer permit exemptions below Segment 80C. House mortgage exemption, insurance coverage exemptions and the usual deduction can even no longer keep below the proposed regime.
“The brand new tax regime might be non-compulsory and the taxpayers might be given the selection to both stay within the previous regime with exemptions and deductions or go for the brand new decreased tax price with out the ones exemptions,” Sitharaman mentioned when unveiling the Funds.
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