Browsing: Income Tax

Personal Finance
Common Income Tax risks NRIs should be aware of

Imagine this real life situation. You are working in Gulf for last 8 years and your employer decides to terminate your employment during year-end break and you return to India on 31st December 2017. In India number of days are counted with reference to Indian tax year which starts 1st April and ends on 31st March of the subsequent year. In the above example, you completed 275 days during the financial year 2017-18 and returned to India. There is general perception that if you spend more than 183 days outside India you are not a resident of India hence you are NRI. Is that right? Wrong. In a recent case decided by the Authority for Advance Rulings (Income Tax), New Delhi on the application of Mrs. Smita Anand, China it was held that person who resigned from the services of the company is not eligible to be called an NRI…

India
NRIs don’t have to reveal overseas bank details to India govt: CBDT

It is not mandatory for all Non-resident Indians (NRIs) to disclose their overseas bank accounts in the income tax return form, the Central Board of Direct Taxes (CBDT) has said. Putting to rest all confusion on the issue, Sushil Chandra, chairman of the CBDT, on Monday said that only those who seek tax refunds and do not have a bank account in India need to submit their overseas bank account details. Earlier there were reports on Indian media that government is seeking overseas bank account details of NRIs and plans to impose tax on overseas savings. Ministry of Finance’s Tax Department has issued a statement, clarifying the issue which had puzzled NRIs and expatriates. Overseas details only if seeking tax refund “Therefore, the non-residents who are not claiming refund or non-residents who are claiming refund but having a bank account in India are not required to furnish details of their foreign…

UAE
UAE has no plans for personal income tax : Finance Ministry

The UAE has no plans to impose new taxes on individuals and the Government is not studying the introduction of more fees for services, Younis Al Khouri, under-secretary at the Ministry of Finance, local media reported him as saying. Governments across the Arabian Gulf have been planning fresh ways to raise money as low oil and gas prices open up big deficits in state budgets. In 2018, the six members of the GCC plan to introduce value-added tax. However, Mr Khouri’s remarks appeared to rule out, for now at least, the possibility of personal income tax in the UAE. This week the cabinet approved a Dh48.7 billion Federal budget for 2017. Mr Khouri told the Al Bayan newspaper that projects in the budget would not rely on new taxes or additional fees, or revenues from VAT. The budget will not be affected by changes in global oil prices, he added.…

UAE
UAE announces value added tax, Other GCC countries to announce soon

The UAE will implement value added tax (VAT) at the rate of five per cent from January 1, 2018, said Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs. The minister was speaking to reporters after a joint press conference on Wednesday with Christine Lagarde, Managing Director of the International Monetary Fund (IMF), in Dubai. Other GCC countries to announce dates soon GCC countries have recently agreed that they will introduce VAT at a rate of five per cent in 2018. The framework agreement on the implementation of VAT across the GCC is expected in June this year. “Once the framework agreement on implementation of VAT is reached, GCC countries have time from January 1, 2018 to January 1, 2019 to implement VAT,” said Al Tayer. The minister said each country has the flexibility to introduce VAT within this time frame. “Other countries can implement [at the same time] or…

Personal Finance
Dear NRI, Have you filed your income tax returns ?

There is a general belief that NRIs do not have to pay any income tax in India and most NRIs neglect tax as something not affecting them. In reality NRIs have tax exemption only for income generated from abroad. Even if you are an NRI, you are liable to pay income tax on whatever income you earn from India – for example, rent from property, profit from sale of assets or dividend from shares. However, this is applicable only if your income in India crosses the basic exemption limit of Rs 2 lakh per year. Who is an NRI ? To determine if you are eligible for tax exemptions, you need to find out your residential status based on number days spent in India. The Income tax department classifies an individual to be a non-resident when: You reside outside India for a period of 182 days or more during the relevant previous year   [OR] You are…