{"id":8189,"date":"2011-01-11T18:24:10","date_gmt":"2011-01-11T12:54:10","guid":{"rendered":"https:\/\/www.legalindia.in\/news\/?p=8189"},"modified":"2011-01-11T18:24:10","modified_gmt":"2011-01-11T12:54:10","slug":"gulf-nris-seek-exemption-under-new-direct-tax-rules","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/news\/gulf-nris-seek-exemption-under-new-direct-tax-rules","title":{"rendered":"Gulf NRIs seek exemption under new direct tax rules"},"content":{"rendered":"
\"\"<\/a>
Finance Minister Pranab Mukherjee <\/figcaption><\/figure>\n

The proposed changes in the new direct tax code, which makes NRIs liable to pay tax if they stay in India for over 60 days a year, has led to some distress among the Indian diaspora in the Gulf region as they tend to spend a longer time in India due to their different socio-economic background, prominent NRIs say.<\/p>\n

\u2018NRIs in the Gulf cannot be considered at par with the NRIs in the rich Western countries. They should be given differential tax treatment,\u2019 Ram Buxani, president of Dubai-based Cosmos-ITL Group, told \u00a0in an interview.<\/p>\n

The new direct tax code (DTC) proposes to make non-resident Indians (NRIs) liable to pay tax if they reside in India for more than 60 days in a particular year, down from the current provision of 182 days in the existing Income Tax Act.<\/p>\n

\u2018NRIs who are in the Gulf tend to visit India for a longer period. They do it for various purposes like long-term medical treatment, children\u2019s marriages and education,\u2019 said Buxani, adding the proposed tax regulation had created unrest among Indians in the Gulf region as a majority of them visit their homeland for more than 60 days in a year.<\/p>\n

Buxani, founder of the erstwhile Overseas Indians Economic Forum that was later merged with Indian Business and Professional Council, said the Gulf region should be given differential treatment under the new direct tax regulation in line with the Customs Act that gives special treatment to neighbouring countries like Nepal and Bhutan.<\/p>\n

\u2018Our demand is that the current provision of 182 days should stay. If it is brought down to 60 days, the Gulf region should be exempted,\u2019 said Buxani.<\/p>\n

He said prominent NRIs from the Gulf region were lobbying against proposed changes and had already raised their concern with the Indian government.<\/p>\n

The Direct Tax Code (DTC) Bill was tabled in parliament in the monsoon session last year. The new rule is aimed to replace the archaic Income Tax Act from April 1, 2012.<\/p>\n

According to the draft bill, NRIs become Indian residents for the purpose of taxation if he\/she stays in India for 60 days or more in a financial year and also stayed for 365 days or more in the preceding four financial years.<\/p>\n

Finance Minister Pranab Mukherjee said the government was aware of the concerns of the Indian diaspora and had not yet taken any final decision on the issue.<\/p>\n

\u2018It is still in the formulation stage \u2013 under scrutiny of relevant parliamentary committees, no final decision is taken yet,\u2019 Mukherjee said at the Indian diaspora meet here.<\/p>\n

M.A. Yusuffali, managing director of EMKE Group that runs LuLu hypermarket chain in the Gulf region, said the proposed regulation would hurt low-paid workers.<\/p>\n

\u2018Many people take two-three months\u2019 long vacation after working for two-three years. The new law will be a big problem for them,\u2019 said Yusuffali, who is also a member of the prime minister\u2019s global advisory council.<\/p>\n

Yusuffali pointed out that the over five million NRIs in the Gulf countries are a very important source of foreign remittance for India and they should be given fair treatment.<\/p>\n

Non-resident Indians in the Gulf countries contribute nearly one-third of foreign remittance flow to India. According to the Reserve Bank of India (RBI) data, India received $55 billion remittance during the last fiscal, which constitutes nearly four percent of the country\u2019s gross domestic product (GDP).<\/p>\n","protected":false},"excerpt":{"rendered":"

The proposed changes in the new direct tax code, which makes NRIs liable to pay tax if they stay in India for over 60 days a year, has led to some distress among the Indian diaspora in the Gulf region as they tend to spend a longer time in India due to their different socio-economic […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[12],"tags":[1984,1985],"class_list":["post-8189","post","type-post","status-publish","format-standard","hentry","category-tax-law-news","tag-direct-tax-rules","tag-finance-minister-pranab-mukherjee"],"yoast_head":"\nGulf NRIs seek exemption under new direct tax rules - Legal News India - Supreme Court & High Court Updates<\/title>\n<meta name=\"description\" content=\"The proposed changes in the new direct tax code, which makes NRIs liable to pay tax if they stay in India for over 60 days a year, has led to some - Get the latest legal news from the Supreme Court, High Courts, and government. 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National Consumer\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"NRIs can purchase a house in India, rules NCDRC","src":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2015\/06\/jail.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":7873,"url":"https:\/\/www.legalindia.com\/news\/talks-on-how-to-enrol-nris-still-on-vayalar-ravi","url_meta":{"origin":8189,"position":1},"title":"Talks on how to enrol NRIs still on: Vayalar Ravi","author":"Legal India Admin","date":"December 21, 2010","format":false,"excerpt":"The government is having intensive discussions to find out the most \"practical way to include nearly a million non-resident Indians in the electoral rolls, Minister of State for Overseas Indian Affairs Vayalar Ravi said here Tuesday. \"Two rounds of discussions have been held with the election commission and external affairs\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2010\/12\/Vayalar-Ravi.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":8476,"url":"https:\/\/www.legalindia.com\/news\/problems-in-nri-voting-rights-being-worked-out-vayalar-ravi","url_meta":{"origin":8189,"position":2},"title":"Problems in NRI voting rights being worked out: Vayalar Ravi","author":"Legal India Admin","date":"January 23, 2011","format":false,"excerpt":"Practical problems are being worked out to enroll non-residents Indians (NRIs), specially in the Middle East, on the electoral rolls, Minister for Overseas Indian Affairs Vayalar Ravi said here on Sunday. \"Look, there are practical problems in enrolling them because close to 90 percent of NRIs are in the Middle\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2011\/01\/Vayalar-Ravi.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":35708,"url":"https:\/\/www.legalindia.com\/news\/ec-proxy-voting-e-ballots-nris","url_meta":{"origin":8189,"position":3},"title":"EC for proxy voting and e-ballots for NRIs","author":"Legal India Admin","date":"October 26, 2014","format":false,"excerpt":"The Election Commission favours\u00a0proxy voting and e-ballot for NRIs but not voting in Indian\u00a0embassies abroad.\u00a0 It says the Ministry of External Affairs (MEA) does not\u00a0favour voting in missions abroad. \u201cWe are not opposed to anything. 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The plea moved Saturday said the existing provision under section 20A of\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"supreme court","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2012\/04\/supreme-court3.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":20186,"url":"https:\/\/www.legalindia.com\/news\/ask-nris-to-increase-remittances-assocham","url_meta":{"origin":8189,"position":5},"title":"Ask NRIs to increase remittances: Assocham","author":"Legal India Admin","date":"May 13, 2012","format":false,"excerpt":"Increasing internal demand and motivating expatriates to send home more remittances may solve the Indian economy's problems due to a depreciating rupee, an industry lobby said Sunday. \"At present, NRI deposits are between $52 and $55 billion, which needs to be pushed up to an ambitious level of $75-80 billion,\"\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/p6H5Bf-285","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/8189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/comments?post=8189"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/8189\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media?parent=8189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/categories?post=8189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/tags?post=8189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}