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.
- 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.