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Sitharaman Says NRIs Have To Pay Tax Only Based On The India Income
By: Tupaki Desk | 3 Feb 2020 7:08 AM GMT
In a much relief to the Non-resident Indians(NRIs), Union Finance Minister Nirmala Sitharaman said that the NRIs who are working in the income-tax-free jurisdictions like the UAE have to pay the taxes only on the grounds of the income which is generated in India and not based on the income outside India.
Talking about the deemed residents of India under the provisions in the Finance Bill, Sitharaman said, "income earned outside India by him or her shall not be taxed in India unless it is derived from an Indian business or profession. Necessary clarification, if required, shall be incorporated in the relevant provision of the law".
"I would certainly not desire any confusion in the minds of the tax authority. If there is any confusion in the minds of assessees, I am here to answer," she maintained.
"An NRI living in another country earns money there that is not taxed there at all. He has some earnings through something in India, but does not pay tax here either because he does not live here. What we are saying is that for the income generated in India pay a tax. If you have property here that generates rental income here, but because you live there, you pay tax neither there nor here. I am not taxing what you earn in Dubai," she added.
She said that the finance ministry will come up with a detailed plan to make the new low income-tax rate schemes for the individuals to reach the public and to grant more clarity on the new slabs.
"Eventually, we should have a system where the tax rate is significantly lower and simpler for people to comply with. That means removing all exemptions and ifs and buts. Today, the middle and low income people need more money in their hands and we offered this scheme," she observed.
Talking about the deemed residents of India under the provisions in the Finance Bill, Sitharaman said, "income earned outside India by him or her shall not be taxed in India unless it is derived from an Indian business or profession. Necessary clarification, if required, shall be incorporated in the relevant provision of the law".
"I would certainly not desire any confusion in the minds of the tax authority. If there is any confusion in the minds of assessees, I am here to answer," she maintained.
"An NRI living in another country earns money there that is not taxed there at all. He has some earnings through something in India, but does not pay tax here either because he does not live here. What we are saying is that for the income generated in India pay a tax. If you have property here that generates rental income here, but because you live there, you pay tax neither there nor here. I am not taxing what you earn in Dubai," she added.
She said that the finance ministry will come up with a detailed plan to make the new low income-tax rate schemes for the individuals to reach the public and to grant more clarity on the new slabs.
"Eventually, we should have a system where the tax rate is significantly lower and simpler for people to comply with. That means removing all exemptions and ifs and buts. Today, the middle and low income people need more money in their hands and we offered this scheme," she observed.
