The non-resident Indians (NRIs) are looking forward optimistically towards Indian budget which will be presented on 1st February. NRIs stuck in India since months due to the pandemic seek relaxation on investment rules. They seek reduction in hefty taxes levied on income from investment in assets, mutual fund, stock market etc. They demand that certain tax deductions should be given to NRIs in line with the other citizens of the country.
With only few days left for the presentation of the budget, citizens residing in the country and NRIs residing in other countries have several expectation from the budget of Nirmala Sitharaman. While common citizens are looking forward to reduction in inflation, the middle class is wishing a reduction on income tax rate. On the other hand, NRIs settled abroad are seeking more leeway in investment rules in India.
Similar to other countries worldwide, India is also facing an economic crisis due to the coronavirus. The budget of the Modi government for the year 2022-23 will not be so simple as it is fighting against a number of problems like the mega vaccination scheme, loss of business due lockdown, recession in the economy, unemployment, inflation. Therefore, all eyes are on the forthcoming budget at home and abroad.
What NRI community is looking forward to:
1 TDS deducted by the government on income in India 2 Eliminate the unnecessarily hassles in getting refund of high TDS 3 Eliminate tax inconsistencies during the sale of leased property 4 Tax relief for NRIs trapped in India for months due to pandemic 5 Review the tax policy to encourage NRIs to invest in the Indian stock market 6 Reasonable increase in limit of remittance from India from the current 1 million dollar 7 TDS on Debt Scheme for NRIs should be reduced from 30% to 15% 8 Indexation benefits are offered on investments in mutual funds 9 There should be no tax on exchange in a uniform ULIP scheme 10 Pan and Aadhaar linking policy for NRIs should be made clearer 11 Tax holiday be given on the return of NRIs to regularize their foreign affairs 12 NRIs trapped in India due to the pandemic should be given exemption in the rules of residential status 13 Review the residential status of NRIs with respect to income 14 NRIs allowed to invest in Senior Citizen Savings Scheme, PPF 15 NRIs be able to avail a deduction of Rs 150,000 under section 80C and Rs 50,000 under section 80CCD (B) similar to any tax payer in India. NRIs want to invest in senior citizen savings scheme, open their PPF account, able to buy NSC and deposit money in Post Office.
NRIs are also seeking the same tax deduction benefits similar to the citizens living in the country.
Families and relatives of NRIs living abroad reside in India. However, NRIs are not given certain tax deduction benefits. Expenses incurred by NRIs for treatment of persons with disabilities living in India, expenses incurred on treatment of family members suffering from certain diseases are not covered by the tax deduction benefits under Section 80DD, Section 80DDB. NRIs take care of their dependents in the country even while living abroad so they too should be given the benefit of tax deduction just like the citizens living in the country.
TDS surcharge on money paid to NRIs through mutual funds to be 10 per cent. The Association of Mutual Funds in India (AMFI) has demanded in its report that a uniform surcharge of
10 per cent on TDS should be levied on the amount paid to NRIs by mutual funds in the next budget. At present, NRIs are charged a surcharge of 10 to 37 per cent on mutual fund income.
