Dubai: Stop the spread of fear among NRIs - that’s what NRI businessmen in the UAE are saying about the reaction to the NRI status change.
“Reducing the number of days for an NRI to be able to live in India from six months to four is likely to have a negative impact,” said Paras Shahadpuri of Nikai Group. “There is a general fear that has set in the minds of NRIs - even top Indian media has been calling it a shocker for NRIs. This is unnecessarily spreading fear... and it should be stopped.
“There is no danger to NRIs being taxed. The only person who is directly being affected is if a person is not a resident anywhere abroad.”
Bring on the clarity
Business owners, however, are calling on the Indian Government to bring in some more transparency on what will change with the new law and who will feel its impact.
“More clarity is required on taxation policies in order for us to comment more,” said Rizwan Sajan, Chairman of Danube Group. “Another section of people who will be directly impacted are those with business interests in India but use their NRI status to evade taxes. They will need to do some major re-structuring of their business.”
The Government on Sunday issued a statement that "In case of an Indian citizen who becomes deemed resident of India under this proposed provision, income earned outside of India will not be taxed in India unless it is derived from an Indian business or profession. Necessary clarification, if required, shall be incorporated in the relevant provision of the law."
Making NRIs accountable
For K.S. Parag, Managing Director of FVC, “The budget will hold NRIs more accountable. By reducing the six month timeframe to four, NRIs will now not be able to stay for more than four months in the country. A lot of them have been using their NRI status to their benefit just so they can avoid taxation. This will not happen.”