From: Hemant Rao hemantrao@ >RECEIVED THIS FROM ANOTHER NRI ENTITLED "END OF TAX HOLIDAY FOR NRI's?" WONDER >HOW MUCH OF THIS IS AUTHENTIC. SOMETIMES PEOPLE GET CARRIED AWAY AND DRAW >THEIR >OWN CONCLUSIONS. EVEN IF TRUE, WONDER IF THIS LAW COULD APPLY TO POI/OCI CARD >HOLDERS WHO I BELIEVE, ARE COVERED BY THE DOUBLE TAXATION TREATIES WITH INDIA >AND THE COUNTRY OF THEIR NEW CITIZENSHIP. THIS MAY NEED SOME INVESTIGATION AND >COMMENT. - HEMANT RAO > > > > > > > > > > > > NEW INDIAN TAXATION RULES SINCE APRIL 2010:- AN NRI IS NOT CONSIDERED NRI IF >HE/SHE COMES TO INDIA FOR 60 DAYS IN A YEAR, BUT WILL BE TAXED ON ALL INDIAN & >FOREIGN INCOME FOR THAT FINANCIAL YEAR, EVEN IF HE/SHE HAS LIVED ABROAD SINCE. >THAT MEANS FROM NOW ON, IF AN NRI GOES TO INDIA EVEN FOR A FEW TRIPS WHICH >MAKE >A TOTAL OF 60 DAYS OR MORE , NOT ONLY HE/SHE WILL BE TREATED AS ANY INDIAN >CITIZEN, BUT MUST ALSO DECLARE HIS/HER FOREIGN INCOME AND PAY TAXES ON IT. >> >>TO GO TO INDIA IN FUTURE, WE MAY HAVE TO ENSURE THAT WE GO ONLY THERE ONLY IN >>AN >>EMERGENCY OR TO MEET FAMILY OR CLOSE RELATIVES, BUT NOT FOR LONG SOCIAL >>TRIPS, >>OR LONG MEDICAL CHECK UPS ETC.. UNDER CLAUSE 4 OF THE DIRECT TAXES CODE, >>WHICH >>IS TO COME INTO EFFECT FROM 1ST APRIL 2012, THE STATUS OF RESIDENT BUT NOT >>ORDINARY RESIDENT, WHICH IS CURRENTLY AVAILABLE UNDER SECTION 6 (6) OF THE >>INCOME TAX ACT OF 1961, IS SOUGHT TO BE REMOVED. AFTER THE CODE COMES INTO >>FORCE, A PERSON WILL BECOME RESIDENT IN INDIA IN ANY FINANCIAL YEAR IF EITHER >>OF >>THE FOLLOWING TWO CONDITIONS IS FULFILLED: >> >>A. IF HE IS IN INDIA FOR A PERIOD OR PERIODS REPEAT PERIODS AGGREGATING TO >>182 >>DAYS OR MORE IN A FINANCIAL YEAR OR >>B. IF HE IS IN INDIA FOR 60 DAYS OR MORE IN A FINANCIAL YEAR AND HAS ALSO >>BEEN >>IN INDIA FOR 365 DAYS OR MORE WITHIN THE FOUR YEARS IMMEDIATELY PRECEDING >>THAT >>FINANCIAL YEAR. >>C. THEREFORE, A NON RESIDENT INDIAN WOULD BECOME RESIDENT IN INDIA UNDER >>THE >>DIRECT TAX CODE IF EITHER OF THE AFORESAID TWO CONDITIONS IS FULFILLED, AND >>WILL >>BE LIABLE TO TAX IN INDIA ON HIS WORLD INCOME. THIS WOULD BE NOT WITHSTANDING >>THE FACT THE HE MAY BE A PERSON RESIDENT OUTSIDE INDIA UNDER THE PROVISIONS >>OF >>THE FOREIGN EXCHANGE MANAGEMENT ACT 1999. >> > > > > > > > > > > ________________________________
