Ask Experts Questions for FREE Help !
Ask
    Trishala Raj's Avatar
    Trishala Raj Posts: 95, Reputation: 1
    Junior Member
    		  
    #1

    Apr 16, 2009, 10:16 AM
    5% Tax on foreign income for NRI
    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..
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 16, 2009, 10:59 AM
    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.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Apr 16, 2009, 11:30 AM

    Trishala Raj
    Where did you read this?
    Trishala Raj's Avatar
    Trishala Raj Posts: 95, Reputation: 1
    Junior Member
    		  
    #4

    Apr 16, 2009, 02:21 PM
    Quote Originally Posted by MukatA View Post
    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.
    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.
    Five Rings's Avatar
    Five Rings Posts: 459, Reputation: 7
    Full Member
    		  
    #5

    Apr 21, 2009, 02:15 AM

    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
    davemayank's Avatar
    davemayank Posts: 3, Reputation: 1
    New Member
    		  
    #6

    Apr 22, 2009, 06:28 AM

    Hi,
    This is absolutely wrong indian government have nothing announced like this so be happy
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search


Check out some similar questions!

Foreign Income and Income Tax in 1040 [ 14 Answers ]

Can anybody suggest where to include Foreign Income and Income Tax in 1040 form. I am basically dual status alien but want to make "Resident for Full year" choice which necessiates to include my worldwide wages. I am married. To make this choice what suppose to provide to IRS and how to...

Tax for a foreign income [ 8 Answers ]

Hi, I was here from Jan 5, 2008 to Feb 14, 2008 and was back from April 19 and I am leaving on Dec 6, 2008. The company that sent me here said that I need to file for tax here based on substantial presence test which is >183 days physically present here. However, I only get paid on my home...

Foreign Income [ 3 Answers ]

I am a us citizen and my husband is a resisdent with a social security number. My question is when I fill out my taxes do I need to add his income into wages manually as it is coming up a negative number since we are using the foreign exclusion. He lived all year in a foreign country so he has...

Worldwide Income - Proof of foreign income [ 7 Answers ]

I am a US citizen and my spouse came to the USA on a K-1 visa in early September, 2008. She has been living here ever since. For the 2008 tax year, we plan to file a joint tax return and make her a "Nonresident Alien Treated as a Resident" for tax purposes. To do that, we have to report her...

2006 taxes: F-1 OPT Income & Foreign Income [ 4 Answers ]

Hi, I have a somewhat complicated question about my 2006 taxes... I came to the US in 2001 on a student visa (F1). After I finished my degree I worked one year under OPT, and I left when my OPT/visa expired in May 2006 and went home to my native country and got a job there. So basically I...

View more questions Search