CA Arun Tiwari
Quick Summary
Introduction India's tax system, while comprehensive, can be challenging for Non-Resident Indians (NRIs). Navigating the complex rules becomes even harder due to the unequal treatment between residents and non-residents. Although NRIs are taxed only on income generated in India, certain tax provisi
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FAQ :
NRIs face unequal treatment for LTCG, where even small gains are fully taxable, and they often miss out on indexation benefits available to residents, leading to a higher overall tax burden.
The proposals suggest applying a slab-based tax system for NRI dividend income, similar to residents, and capping surcharges for NRIs at 15% to align with resident taxpayers.
NRIs face higher TDS rates (20-30%) on property sales compared to residents (1%), which can exceed their actual tax liability, and the process for obtaining lower withholding certificates is often slow and cumbersome.
Currently, taxes can only be paid via an Indian bank account. The proposed solution is to allow NRIs to pay taxes directly from their foreign bank accounts through an updated payment platform.
E-verification currently relies on One-Time Passwords (OTPs) sent only to Indian mobile numbers, making it difficult for NRIs abroad to complete the process. The solution is to extend OTP delivery to foreign mobile numbers.
Currently, non-resident senior citizens are excluded from benefits like the ₹50,000 deduction on interest income from term deposits, which is available to resident senior citizens. The proposal is to extend this benefit to NRIs.
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