The latest budget has used NRIs as a source of revenue, ending a long span of a free lunch given to them.
In its utmost simplicity, the proposed budget requires Non-Resident Indians (Indian passport holders resident abroad for more than 182 days, now proposed at 240 days) to pay Indian income taxes if they are resident in countries that don’t tax them. Why, you would ask, would the Indian Govt do this given the fact that NRIs send their savings to India anyway. The probable answer to that is less NRIs are sending such money to India, given the state of the banking system and the Govt’s fiscal fickle-mindedness. Perhaps smart NRIs can take the Govt to court on this issue of paying taxes but not getting the same benefits as residents do. More and more well-heeled NRIs in the Gulf countries are likely to flee to countries that tax them but give them good value. Unless of course the Gulf Country governments come up with their own form of advantageous taxation by which Indian citizens will not be required to pay Indian income taxes. My thoughts only. Roland. Toronto.
