Hyderabad, October 19: While the new regulations of direct taxes to be introduced from the next financial year will be unexpected for the resident tax payers of India as less direct tax will have to be paid in each income slab, these new regulations will be proved as a burden for NRIs.
According to the new clauses of direct tax regulations 10% tax will be levied on the income of 2 to 5 lakh, 20% on 5 to 10 lakh, 30% on income more than 10 lakh. Salaried persons will be exempted upto 2 lakh while senior citizens’ exemption limit will be 2.5 lakh. The new regulations will come into force from April 2011. They have been approved by the cabinet.
While the residents of India will heave a sigh of relief after the implementation of new regulations, Non Resident Indians will have to forego a large potion of their earnings.
Interestingly NRIs will literally have to count the days during their stay in the country because if they stay more than 59 days a year or 365 or more days during 4 years then they will be deemed to be resident Indians hence the tax will be payable for them on their international earning. Presently they can stay for 181 days in India and they don’t have to pay tax for the income they earn abroad.
——–Siasat News