Subject: FW: NRI 5% TAX
Importance: High
Guys is this a fact???
5% TAX ON FOREIGN INCOME FOR NRI 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 prevention 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.. For more information on this rule, tax filings and forms
visit http://www.incometaxindia.gov.in/
Get an email ID as [email protected] or [email protected]. Click
here http://in.promos.yahoo.com/address
