Investment Yogi : Provides information on NRI Tax Calculation and NRI Investments in India..
Unconfirmed Rumour - 5% TAX ON FOREIGN INCOME FOR NRI STARTING 2009 –10
Please note that InvestmentYogi believes this in an unconfirmed rumour. Most likely an April fool prank!
The content of the email that was widely circulated is as follows:
"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 move is expected to generate ~10 Billion INR tax collection for the government in the year 2009-10."
This email even refers to the Income Tax website http://www.incometaxindia.gov.in/, which has no mention of this in the NRI section.
Please beware of these email scams.
Investment Yogi : India's Leading Financial Planning Firm offers detailed information on NRI Tax and NRI Investments in India.