Budget 2021: Govt proposes relief for NRIs [Read Finance Bill]

Budget 2021 - relief for NRIs - Taxscan

The Non-resident Indians coming back to their home country due to the global market recession and unemployment in foreign countries post-pandemic period to get some benefits from the Central Government.

The Union Budget for the year 2021-22 proposed that the Government will soon notify rules for removing their hardship of double taxation relating to their incomes in their foreign retirement accounts.

“When Non-Resident Indians return to India, they have issues with respect to their accrued incomes in their foreign retirement accounts. This is usually due to a mismatch in taxation periods. They also face difficulties in getting credit for Indian taxes in foreign jurisdictions. I propose to notify rules for removing their hardship of double taxation,” Finance Minister Nirmala Sitharaman announced in the Parliament today.

Further, the budget also allows the NRIs to form a One Person Company (OPC). Earlier the NRIs were exempted from forming One Person Company. However, they were allowed to become directors of an Indian company. Only resident Individual persons could start the One Person Company (OPC) in India. This new proposal would undoubtedly benefit many NRIs.

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