Money earned in India by NRIs will be taxed

Money earned in India by NRIs will be taxed

Part of: GS Prelims –Economy  and GS-III – Budget

In news :

The Finance Bill has proposed three major changes to prevent tax abuse by citizens that don’t pay taxes anywhere in the world —

• reducing the number of days that an Indian citizen can be granted non-resident status for tax purposes from 182 to 120; 
• citizens who don’t pay taxes anywhere will be deemed to be a resident; 
• The definition of ‘not ordinarily resident’ has been tightened.

Non-Resident Indian

• An Indian citizen who is ordinarily residing outside India and holds an Indian Passport.
• A person is considered NRI if She is not in India for 182 days or more during the financial year Or;
• If he/she is in India for less than 365 days during the 4 years preceding that year and less than 60 days in that year.