homepersonal finance NewsGovt likely to take liberal view on taxability of NRIs who have overstayed beyond 182 days
Govt likely to take liberal view on taxability of NRIs who have overstayed beyond 182 days
The government is likely to clarify on Taxability of NRIs who have overstayed beyond 182 days during the Finance Bill discussion.
After Finance Minister Nirmala Sitharaman offered relief from double taxation to NRIs in Budget 2021, sources told CNBC-TV18 that the government is likely to take a liberal view on the taxability of NRIs who have overstayed beyond 182 days.
The government is likely to clarify on the taxability of NRIs who have overstayed beyond 182 days during the Finance Bill discussion, the sources noted, adding that NRIs who provide proof of paying taxes in the resident country are likely to be exempt from paying taxes in India.
The Supreme Court on February 10 had ordered CBDT to issue clarity on the NRI tax issue since the Budget 2021 didn’t clarify on status of taxing NRIs whose stay exceeded 182 days in FY21.
CBDT said that it will ensure that there is no double taxation for the NRIs.
The Budget 2021 proposed to provide relief from double taxation for non-resident Indians (NRIs) on money accrued in foreign retirement accounts by claiming relief on tax deducted on such money in India. Currently, there is a mismatch in the year of taxability of such funds in India and the respective foreign country.
Finance minister Nirmala Sitharaman mentioned in the budget speech that when NRIs return to India, they generally face issues concerning their accrued corpus in foreign retirement accounts. This is usually due to a mismatch in the timing of taxation of such income in the foreign country and India. They may also face difficulties in getting credit for Indian taxes in foreign jurisdictions.
(Edited by : Anshul)
First Published: Feb 17, 2021 8:18 AM IST
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