Can someone clarify if this is true?

STARTING 2009 -10

Government of India today announced imposition of a flat 5% tax on all NRIs over their world-wide income.. Income that is already taxed in India has been kept out of the purview to avoid double taxation. No double taxation benefits would be available for this 5% tax, meaning even if you are paying tax on your income in a country with which India has double taxation agreement, the benefit would not be allowed against this 5% tax. All those Indians who are holding Indian Passports and have been out of the country for more than 180 days during the year are under this requirement. Income proof would have to be submitted in form of employer certificates, foreign tax filings etc. Indian government is also coordinating with Australia , Europe, America , UAE and other countries on collecting Income data for its citizens as part of data sharing initiative on terror prevent ion measures.

This has been hailed as bringing in compulsory participation in development of India from Non resident Indians.. This means NRIs can no more just continue to retain their Indian citizenship without paying taxes in India . Though it may not be favorable in view of the NRIs who already bring substantial forex in form of remittances and Investments. This is bound to cause a lot of heart burn for the Indian community residing outside..

This is expected to generate ~10 Billion INR tax collection for the government in the year 2009-10..

I cannot comment of the validity of this announcement, but I am not surprised by it, given the number of Indians who are working in foreign countries.

Trishala Raj
Where did you read this?

Quote:

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Originally Posted by MukatA

Trishala Raj
Where did you read this?
Today is not April 1.
India is going through general elections. The first phase of polling was on April 16, 2009. I hope you are aware that during election process, government is not allowed to take any policy decision.

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My friend in Singapore had mailed this to me. He heard about it in March and wanted to know if I knew anything about it.

There is nothing on the official Dept. of Revenue site that mentions this. On something this important I would imagine that it would be right at the top.

See: Income Tax India

Hi,
This is absolutely wrong indian government have nothing announced like this so be happy