The United States' Internal Revenue Service (IRS) is enticing more NRIs to disclose their unreported assets and income just weeks before implementation of the US Foreign Account Tax Compliance Act ( FATCA). On June 18, 2014, the IRS announced new Streamlined Foreign Offshore Procedures (SFOP), which will significantly alter all future voluntary disclosures. The SFOP is a game changer for non-resident and resident (who would use the Streamlined Domestic Offshore Procedures ( SDOP)) taxpayers alike
The income earned by non-resident Indians abroad is not subject to tax in India. However, if their income in the country crosses the basic exemption limit of Rs 2 lakh, they are required to file their returns. This income could be in the form of interest on deposits, rental income on property in India, etc.
Also, if NRIs carry out transactions in securities like shares and mutual funds, the capital gains are liable to tax and, hence, the return must be filed. The due date for filing returns by NRIs is 31 July.
In recent years, the US Congress and the US Department of Treasury have come to believe that many US taxpayers (including US citizens and green card holders in India) have not been complying with the tax law that requires reporting of worldwide income, including income held in non-US financial institutions. In an effort to fight this perceived non-compliance, President Obama and the US Congress enacted the Foreign Account Tax Compliance Act (FATCA) in 2010.
Late last year at a California State Bar Tax Section Meeting, a US Internal Revenue Service (IRS) official stated that the IRS will start a new Indian initiative targeted at individuals with undeclared Indian accounts.
Nicholas Connors, a supervisory revenueagent with the IRS small business/self employed division stated that the IRS will soon "begin examining US taxpayers suspected of holding undeclared accounts in Indian banks".
MUMBAI: Indian employees working overseas often face litigation over taxation of their overseas salary income, if such salary is received in India. This is because a non-resident can be subjected to tax in India on that portion of the income which is received in India.
The Income Tax Appellate Tribunal (ITAT) which adjudicates tax matters, in a recent decision, has held that merely because the salary was credited by the Singapore-based employer company to the employee's NRE bank account in Mumbai, it will not trigger a tax incidence in India. The ITAT sought to distinguish between 'income' received in India and an 'amount' received in India.
MORE http://timesofindia.indiatimes.com/business/india-business/Salary-credit-to-non-resident-external-rupee-account-not-taxable/articleshow/30747824.cms .
NEW DELHI : In a major boost for overseas entities, the government has said that Foreign Portfolio Investors would attract uniform tax rate across categories.
FPIs bring together all the three investment categories -- FIIs, their sub-accounts and QFIs.
Besides, the tax rate for FPIs would be the same as that extended to Foreign Institutional Investors. The new system would be especially beneficial for Qualified Foreign Investors who were subjected to higher tax rate earlier.
NEW YORK: Raja Rajeswari has been sworn-in as a criminal court judge here by Mayor Bill de Blasio, becoming the first India-born woman to be appointed a judge in the New York City.
Rajeswari, 43, who had immigrated to the US from India as a teenager, previously worked with the Richmond County District Attorney's Office for her entire career in several bureaus including Criminal Court, Narcotics, Supreme Court, and the Sex Crimes Special Victims Bureau, where she last served as Depu ..
NEW DELHI: The government today agreed to convene an all-party meeting to discuss its proposal to give NRIs the right to exercise their franchise by e-postal ballots or through proxy voting.
Law Minister DV Sadananda Gowda accepted the demand of opposition parties in the Rajya Sabha that their views should be taken into consideration while enacting a legislation to grant voting rights to NRIs and domestic migrant labour.
NEW YORK: Satnam Singh Bhamra might become the first India born and only second Indian origin basketball player after Sim Bhullar to feature in the NBA following his inclusion in the NBA Draft for the year 2015.
The 7 feet 1 inches tall hoopster from the IMG Academy is one of the 91 players -- 48 players from colleges and post-graduate institutions and 43 international players -- who were nominated as early entry candidates for the 2015 NBA Draft presented by State Farm