Union Finance Minister Nirmala Sitharaman will most likely place the new Income Tax Bill in Parliament today. According to the reports, the new bill will replace the Income Tax Bill of 1961 and simply the language of the existing act.
As per the sources, the new Income Tax bill may affect the Non-Resident Indians (NRIs) living in India with an income over 15 lakhs per annum because we hear that all such individuals may be considered as “residents” for tax purposes.
If that is the case, they will have to pay Income Tax for the money they are earning in India. Apparently, this decision will remove the loopholes in the existing tax system and prevent NRIs from evading income tax.
The bill says that an individual will be considered a resident of India if he spends at least 182 days in India in a tax year or if they stay in India for at least 60 days in a tax year and have spent a total of 365 days or more in the previous four years.
Meanwhile, the 60-day rule will not be applicable to individuals who leave India as members of an Indian crew ship or who travel abroad for employment.
Also, NRIs visiting India will also not come under this rule. If such NRI visitors earn Rs. 15 lakhs in India (not through their foreign income), then the 60-day rule will be extended to 120 days.
Related
Tags Income Tax
