Income Tax Dept To Question NRIs On 'Unrealistic' Income

Income Tax Dept To Question NRIs On 'Unrealistic' Income

It is almost sure that the Income Tax department of India would be questioning the NRIs about the unrealistic bloated earnings overseas.

The main objective they are expected to propose is that an Indian citizen who is not liable to tax in a foreign country shall be deemed to be resident in India and such residents will have to pay the tax on overseas income and also disclose foreign assets.

Since the passage of the Black Money Act in 2015, the Indian government is focusing on many Indians who generate fake overseas income through trading, consultancy fee and fat salaries and may soon ask them to justify their incomes.

The government's press release mentions the word 'bona fide workers' and saying they will not be taxed on their earnings abroad while their eye would be on NRIs with bloated income.

Experts opine that there is no clarity or definition of what a 'bona fide worker' is while not all the NRIs can be called so as they earn from business or executive positions.

This news on NRIs to be questioned from the next fiscal year has been triggering tremors to many Indians across the world while the people with unrealistic earnings had to fear for obvious reasons, but the NRIs with legitimate earnings are worried about the ambiguous 'bona fide workers' statement from Indian Government.