CBDT clarification over NRI’s to be taxed in India

CBDT clarification over NRI’s to be taxed in India

Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Government of India, has issued an important clarification pertaining to a proposal in the Finance Bill. “CBDT issues clarification on the new provision introduced in #Budget2020 pertaining to residence in India. Income Tax India on its Twitter handle @IncomeTaxIndia posted, “CBDT issues clarification on the new provision introduced in #Budget2020 pertaining to residence in India.”

The statement says, “In some section of the media the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries will be taxed in India on the income that they have earned there. This interpretation is not correct.”

Read more   ↓

The statement adds, “It is clarified that in case of an Indian citizen who becomes deemed resident of India under this proposed provision, income earned outside India by him shall not be taxed in India unless it is derived from an Indian business or profession.”

The Finance Bill, 2020 has proposed that an Indian citizen shall be deemed to be resident in India, if he is not liable to be taxed in any country or jurisdiction. This is an anti-abuse provision since it is noticed that some Indian citizens shift their stay in low or no tax jurisdiction to avoid payment of tax in India.

The new provision is not intended to include in tax net those Indian citizens who are bonafide workers in other countries. In some section of the media the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries will be taxed in India on the income that they have earned there. This interpretation is not correct…Read more>>

Source:-techiyogiz

Share:

rajtechnews