New Delhi: Here comes a piece of news from the Union Budget 2020 for the non-resident Indians which might not sound good to them. As per the announcement of the Union Budget, an NRI who is not taxed in a foreign country will become taxable in India. Also Read - Youth Congress Stages Symbolic Protest Against Economic Slump, Union Budget 2020
Talking in detail about the provision, Revenue Secretary Ajay Bhushan Pandey told IANS that if any Indian is not a resident of any country in the world, the automatically he’ll be deemed to be a resident of India and his income will be taxed. Also Read - Union Budget 2020: PM Modi’s SPG Protection Gets Allocation of Rs 540 Crore This Year
“Some people are residents of no country. They may be staying in different countries for certain number of days. So, if any Indian citizen is not a resident of any country in the world, he’ll be deemed to be a resident of India and his worldwide income will be taxed,” he said. Also Read - Sensex Sinks 988 Points as Union Budget Fails to Live up to Market Expectations
This particular provision of the budget will affect the individuals who have moved out of the country and are yet not the resident of any country.
The definition of NRIs has also changed in this new budget. To be recognised as an NRI, an Indian now has to stay abroad for 240 days, as against 182 previously. On the other hand, an Indian national, who wants to claim the non-resident status, can’t stay in India for more than 120 days or more in a year.
Tax experts are of opinion that the person who is resident of no country and is out of India for 183 days just to maintain the NRI status, he will be considered as Resident of India and the income will be taxable.