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Industries to FM: Tax Only on Foreigners Domestic Income

Assocham, CII, FICCI, and the US India Strategic Partnership Forum (USISPF) comes under the industry forms who propose the Finance ministry sought the privilege on the personal tax of individuals who are NRIs for 3 years.

Tax only Indian Income of Foreigners

The motive is to develop India as an attractive destination for refugees handling foreign direct investments (FDI) for the country, said economic times.

The proposal stated that the NRIs living long enough in India with income sourcing from investments and FDI should be taxed.

“Such a policy has worked extremely well for Singapore and China, which was able to achieve 4 percent of its gross domestic product (GDP) The biggest tax reform i.e. Goods and Services Tax is now a part of Indian Economy. A new and unified tax structure is followed for indirect taxation as FDI in its boom phase, said Dilip Chninoy the general secretary FICCI.”

According to him, India should act fast to examine the rules of residency for the investors who tremendously affect politics.

“Deepak Sood the general secretary of Assocham explained the requirement for building a conducive environment for expats to live in India for extended periods, adding that the Centre should “… consider taxing foreign personnel on their locally generated income.”

Read Also: 10 Tax-Free Investments Under Income Tax Slab FY 2020-21 Get to know about 10 Tax-Free investments under Income Tax Slab financial year 2020-21. It includes Interest in post office saving, Gratuity from employer account, Tax-free interest on up to 9.5% on EPF, etc. Read more

Under section 6 of IT NRIs residing or working in India however not the citizens who have not furnished the returns for the last 3 years which can be extended up to 5 years as per reports.

A higher executive says the proposal is carried to the finance ministry for budgeting.

CII clarified that the movement can boost financial activity and tax collections because of foreign direct investment. Along with that the USISPF President Mukesh Aghi proclaimed that it gives surety about “job creation and inclusive growth.”

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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