The Indian Government is after NRI finances like never before. From foreign bank accounts to overseas businesses, nothing is off-limits.
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If you qualify as RNOR, India can now tax your global passive income, foreign bank interest, stock dividends, and even capital gains. And if you don’t report your foreign assets a 300% penalty or even jail is the minimum punishment prescribed under the new laws.
Even running a foreign business and earning from Indian clients will be taxable now. The new tax regulations mandate that even if your company has no office in India, it could still owe taxes.
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Claiming tax relief for NRIs now comes with strict documentation rules. One mistake, and you could face penalties.
Now, foreign investments including crypto, stocks, and even pension withdrawals should be reported to the Indian government for tax purposes.
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If NRIs are thinking about any reliefs under DTAA rules, it will be another nightmare as you will have to provide more documentation. Anyone caught using it as a loophole to avoid taxes will be facing criminal charges.
The only relief for NRIs is after they return to India. You will not be taxed for the first 2 years of your return, but after that, all your global income will be taxed.
So if you are planning to return to your home country after setting up a business or other income sources from abroad, you must plan it wisely.
The government is watching every transaction, every asset, and every rupee you earn abroad. Miss a detail, and you’re looking at heavy fines, frozen accounts, or worse—criminal charges. NRIs’ lives just become more difficult with this chaos.
