Non Resident Indian Business Forum

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Amarendra Dhiraj Group moderator
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A better deal for NRIs
Investments by Non-Resident Indians (NRIs) in India have increased greatly post liberalisation and the softening of the repatriation norms by the Reserve Bank of India (RBI). However, a major concern still remains in respect of the taxation regime pertaining to NRIs under the Income-Tax laws in India. An NRI’s income is subject to certain hardships and controversies during taxation and is not as simple as it appears. In this article we portray some of the controversies which dampen the spirit of income inflows into India to some extent.

Residence criteria

Double taxation avoidance agreement protects a person from the incidence of double taxation in the residence country and source country. To enjoy the benefit of avoidance of double taxation, a person must be a resident of one of the country with whom India has entered into an agreement.

Business income vs capital gain

Many NRIs are showing interest in the Indian stock market, which is one of the progressive signs for the nation. But recently issues created on tax treatment on surplus earned on sale of shares have created chaos amongst NRIs.

FBT on ESOP to NRIs

India is known for specialisation in information technology. It has started competing with companies like Accenture, IBM etc at the global level. As the sector grows, many Indian are deputed on assignments at offshore locations for a long duration. Employee Stock Option is considered as the preferred option to retain talent.

To further boost investment by NRIs in various sectors the law should be amended.

Source: http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=11...
- 10 May 2007, 11:43 am
Amarendra Dhiraj wrote: > Investments by Non-Resident Indians (NRIs) in India have increased > greatly post liberalisation and the softening of the repatriation > norms by the Reserve Bank of India (RBI). However, a major concern > still remains in respect of the taxation regime pertaining to NRIs > under the Income-Tax laws in India. An NRI’s income is subject to > certain hardships and controversies during taxation and is not as > simple as it appears. In this article we portray some of the > controversies which dampen the spirit of income inflows into India to > some extent. > > Residence criteria > > Double taxation avoidance agreement protects a person from the > incidence of double taxation in the residence country and source > country. To enjoy the benefit of avoidance of double taxation, a > person must be a resident of one of the country with whom India has > entered into an agreement. > > Business income vs capital gain > > Many NRIs are showing interest in the Indian stock market, which is > one of the progressive signs for the nation. But recently issues > created on tax treatment on surplus earned on sale of shares have > created chaos amongst NRIs. > > FBT on ESOP to NRIs > > India is known for specialisation in information technology. It has > started competing with companies like Accenture, IBM etc at the > global level. As the sector grows, many Indian are deputed on > assignments at offshore locations for a long duration. Employee Stock > Option is considered as the preferred option to retain talent. > > To further boost investment by NRIs in various sectors the law should > be amended. > > Source: > http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=11403495-46f > f-4d9e-976f-ec926e02bced&MatchID1=4461&TeamID1=10&TeamID2=6&MatchType1 > =2&SeriesID1=1108&PrimaryID=4461&Headline=A+better+deal+for+NRIs

Non Resident Indian Business Forum

A better deal for NRIs