CDs

I got this email today. Please check if this is really the case. I saw on the tv that the property sold abroad need to be reported to the Indian tax folks (yeah right! keep waiting).

KM
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An NRI is not considered as NRI if he comes to India for 60 days & more in a year but will be taxed on his all the income the person has earned in the foreign county during the year.

It does not matter whether the person has lived outside India for decades. This means from now on, if an NRI goes to India even for a few trips and that cumulates to over 60 days in the year, will be considered as a local citizen and will have to declare his foreign income and pay tax on it.

Therefore, henceforth going to our own country, we will have to make sure that we go only in an emergency but not to meet relatives; neither for a social trip nor for long medical checkups NRIs should now have to get their children married in foreign countries and hold all the other celebrations with close relatives outside India . It is cheaper to buy tickets for close relatives to participate in our children’s weddings in foreign countries

Important news for NRIs!

Now that the Indian government does not require NRI’s foreign exchange, we will now becomeNOT REQUIRED INDIANS. Please forward this to all your NRI friends in your forward list.

THE NEW CLAUSE
Under clause 4 of the direct taxes code, which is to come into effect from 1st April 2012, the status of resident but not ordinarily 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:

· If he is in India for a period or periods repeat periods aggregating to 182 days or more in a financial year
OR
· 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.

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 notwithstanding the fact the he may be a person resident outside India under the provisions of the foreign exchange management act 1999.

It seems it is effective from APRIL 1, 2012 .... it it fools day or coincidence.

Quote:

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Originally posted by Gurram

It seems it is effective from APRIL 1, 2012 .... it it fools day or coincidence.

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These rules were already recommended a couple of years ago and expected to be implemented in year 2012. Such types of rules are already there in countries like Canada/US.

India has DTAA with many countries which will avoid double tax. People working in middle east will be the most affected.