NRIs to be Taxed on their global income
Wednesday, October 20, 2010
NRIs to be Taxed on their global income
A new bill pending in India’s parliament proposes to tax NRIs on their global income if they spend more than 60 days in a year in India. Under existing Income Tax laws, NRIs are taxed on global income only if they spend over 182 days in India in a year. NRIs are also liable for Indian taxes if they reside in India for a period of more than 365 days over a four-year period.
The taxes will kick in on the global income of NRIs who live in countries with which the country has Double Taxation Avoidance Agreements (DTAA) , and that have lower income tax rates than India. India has DTAAs with 74 countries, including the USA, Singapore, UK, Australia, New Zealand, Thailand, South Africa and Saudi Arabia. The liability will be even higher for NRIs living in non DTAA countries, as they will be subject to double taxation, both in India and their foreign country of residency.
A new bill pending in India’s parliament proposes to tax NRIs on their global income if they spend more than 60 days in a year in India. Under existing Income Tax laws, NRIs are taxed on global income only if they spend over 182 days in India in a year. NRIs are also liable for Indian taxes if they reside in India for a period of more than 365 days over a four-year period.
The taxes will kick in on the global income of NRIs who live in countries with which the country has Double Taxation Avoidance Agreements (DTAA) , and that have lower income tax rates than India. India has DTAAs with 74 countries, including the USA, Singapore, UK, Australia, New Zealand, Thailand, South Africa and Saudi Arabia. The liability will be even higher for NRIs living in non DTAA countries, as they will be subject to double taxation, both in India and their foreign country of residency.
0 comments:
Post a Comment