DTC Bill brings bad news for NRIs
More NRIs may fall under the tax net if the Direct Taxes Code (DTC) Bill proposal to impose a
levy on their global income if they stay in India for more than 60 days in a year is approved by
Parliament.
As per the existing Income Tax laws, an NRI is liable to pay tax on global income if he is in India in
that year for a period or periods amounting to 182 days.
Furthermore, in case an NRI resides in India for a period of 365 days or more over a period of
four years prior to the assessment year, he is also liable to pay tax on his global income.
The new DTC Bill has proposed to make an NRI liable to pay tax on global income is he resides in
India in a particular year for a period or periods amounting to 60 days, down from the existing
provision of 182 days in the existing Income Tax Act.
However, the present dispensation for taxation of global income if an NRI resides in India for 365
days or more over a four-year period has been retained in the proposed DTC.
The DTC hopes to plug loopholes with the proposed changes with the aim of preventing tax
evasion through this route, said a senior Finance Ministry official.
In addition, the DTC has also removed the 'Resident Not Ordinarily Resident (RNOR)' category to
simplify the tax laws, the official said.
Now, there will be only two categories, 'Resident' and 'Non-Resident', the official added.
Commenting on the proposal PwC Executive Director (Tax) Kuldeep Kumar said, "With this
change, a non-resident would be at greater risk of becoming an ordinary citizen and become liable
to pay tax in India as the threshold limit has been reduced."
There would be liability on a resident belonging to a country where the tax rate is lower than India
and there is a Double Taxation Avoidance Agreement (DTAA) between both the countries. The
non-resident would be considered a resident if the threshold limit of stay has been exceeded for the
purpose of imposing tax.
In the case of a resident of a non-treaty country, which India has no DTAA with, the tax burden
would be higher if he exceeds the threshold limit of stay in India, Kumar said, adding that he has to
pay tax on all the global income in India as well as the country of residence as per the prevailing tax
laws of that country.
At present, India has comprehensive DTAAs with about 74 countries, including the USA,
Singapore, UK, Thailand, South Africa, Saudi Arabia, New Zealand and Australia.
Experts feel that the DTC proposal could be a damper for NRIs visiting India to meet their relatives
or for business promotion.
Zip the lips, Jairam Ramesh way
New Delhi, Sep 5: Famous for his off-the-cuff remarks, Jairam Ramesh has now apparently learnt
to think twice before speaking out, especially over China.
Famous for his off-the-cuff remarks, Jairam Ramesh has now apparently learnt to think twice
before speaking out, especially over China.
"I will not open my mouth on China," Jairam Ramesh quipped with a finger over his lips, when
asked to comment on the reported presence of Chinese troops in Pakistan-administered Kashmir.
The reason: The minister had created a fiasco in May while talking in Beijing about India-China
warmth, saying that the home ministry was putting "needless" restrictions on Chinese investments in
India. He had to apologise for the remark before Home Minister P. Chidambaram.
Sufi flavour at Shashi Tharoor reception
New Delhi, Sep 5: Not many noticed them at the wedding reception of Congress MP Shashi
Tharoor and his wife Sunanda Pushkar hosted for the capital's power-pack Friday night, but they
were there in their colourful clothes, providing a Sufi touch to the evening.
The caretakers of Khwaja Gharib Nawaz, one of India's holiest Sufi shrines in Ajmer, were
specially invited by the Tharoors for the reception that saw Delhi's Who's Who in attendance.
In the run up to their marriage, the Tharoors had prayed at the shrine of Hazrat Khwaja Moinuddin
Hasan Chishty, a 12th century saint, seeking divine blessings for serenity and bliss in their tryst with
matrimony - the third for both.
Status quo on Kashmir only option not available to us: Omar
SRINAGAR/NEW DELHI: With the Centre and Jammu and Kashmir government working on
various options to address concerns of Kashmiris, Chief Minister Omar Abdullah feels that a firm
action on issues like amending or phased withdrawal of AFSPA and resumption of political
dialogue is an immediate need.
"Status quo is the only option not available to us," was the prompt reply of the Chief Minister when
asked what measures were being considered to address the issues.
"When we talk about removing (rpt) removing status quo, it means resumption of dialogue with all
shades of opinion, a review of laws, measures to deal with unemployment whose figures have
snowballed into six lakhs over the years," he told PTI.
Omar's comments come at a time when the Central Government is expected to hold a high-level
meeting in the next few days.
In the meeting, the Centre, in consultation with the state government, is likely to come out with
specific measures to address some issues which may bring relief to the people of the state, official
sources said.
This includes relocation of security forces, employment package for former militants, who have
served their sentences and are unemployed, and a fresh surrender policy, the sources said.
While the Centre is building a consensus on Armed Forces Special Powers Act, Omar said, "This
is unnecessarily being made a highly emotive issue which has led to extreme positions.
"I would like to request that a pragmatic view about the continuation of the AFSPA be taken with a
view to removing its applicability from those districts where terrorist or insurgent activities are
minimal or insignificant," he said, without naming the Defence Ministry and the BJP, who favour the
continuation of the law in Kashmir.
In a related move, the Centre is also toying with an idea of a proposal submitted by the state
government for which phased withdrawal of AFSPA in the state following a strong case made out
by Omar.
To begin with, Centre is likely to explore the possibility of phased withdrawal of the AFSPA in
three districts of Kashmir -- Srinagar, Budgam and Ganderbal -- along with three in the Jammu
region -- Jammu, Kathua and Sambha -- where incidents of violence have shown a marked
decline, official sources said.
The Chief Minister also gave a road map for its phased withdrawal beginning with the districts
which have registered no or bare minimum violence during the past one year and in this context he
gave examples of the six districts.
Prime Minister Manmohan Singh had also constituted a committee headed by Hamid Ansari before
he became the Vice President, to find ways for improving internal confidence building measures.
The Ansari panel had recommended revocation of AFSPA in the state.
The Administrative Reforms Commission headed by Veerappa Moily, now Law Minister, has also
endorsed withdrawal of AFSPA or at least incorporation of some measures which prevents giving
sweeping powers to the security forces.
Sangh slams Chidambaram for 'saffron terror' remark
The RSS has slammed Home Minister P Chidambaram for his "saffron terror" remarks saying it has
exposed the Congress' strategy of votebank politics. "It is a political conspiracy for votebank
politics to place saffron before Islamic jehad sponsored by Pakistan which has killed thousands of
people so far," Sangh mouthpiece Panchjanya said in its latest issue.
The editorial said that by making the remarks at a conference of police chiefs recently,
Chidambaram has only exposed the "mentality" of Congress.
"...the 85 per cent Hindus of the country should now understand that their interests are not safe
under the present government...only a united Hindu power can defeat such anti-national
conspiracies," it said.
It said the same government shied away from linking terror with any particular community despite
the role of "Islamic jehad" in the killing of scores of people.
Malik, Chidambaram discuss Pak's 26/11 trial
ISLAMABAD: The trial of LeT's Zakiur Rehman Lakhvi and six other suspects in Mumbai attacks
and Pakistan's proposal to form a commission that would visit India to record testimony of two key
witnesses figured prominently in the telephonic talks Interior Minister Rehman Malik had with his
Indian counterpart P Chidambaram.
"We discussed security issues and the ongoing trial here in Pakistan, of those accused in the
Mumbai blast," Malik wrote on Twitter, a social networking website.
During their conversation yesterday, the Pakistani minister proposed that a Commission may be
formed to visit India to record the testimony of two key Indian witnesses for taking forward the trial
of the seven Pakistani suspects.
"I also proposed that a Commission may be formed to visit India and record the statements of the
witnesses... I explained to Mr Chidambaram that the appearance of two main Indian witnesses in
Pakistani Court is most important for trial process to continue here," he tweeted.
Malik, who has over 5,000 followers on Twitter, also "appreciated" the sympathy and condolences
extended by Chidambaram on the loss of lives and property due to the devastating floods in
Pakistan.
The Pakistani Interior Minister, who held talks with Indian High Commissioner Sharat Sabharwal
here yesterday, had earlier told reporters that the trial of Lakhvi and six other suspects was "stuck"
over the issue of Indian witnesses testifying via video-conferencing as this was not allowed under
Pakistani laws.
He had said that Chidambaram told him that the Pakistani proposal about formation of a
commission would be "examined" when it is received.
Though India proposed that the testimony of the two witnesses -- the magistrate who recorded the
confessional statement of lone surviving Mumbai attacker Ajmal Kasab and the police officer who
investigated the incident -- should be recorded via video conferencing, Malik said this was not
permitted by Pakistani laws.
Curfew relaxed for 2 hrs in Ratlam, no untoward incident
Ratlam (MP), Sep 5 (PTI) A relaxation of two hours was given today in the curfew-bound areas of
the city, police said.
Curfew was relaxed from 12 noon to 2 pm, Collector Rajendra Sharma told PTI.
A meeting was held to ensure peace in two areas under curfew - Station Road and Manak Chowk,
he said.
A total of 172 people have been arrested so far, of which 122 were directly involved in the
violence, Pawan Jain, Ujjain Range Inspector general said, adding that violence in the area was
pre-planned.
Barring a minor stray incident when some people hurled stones at a police patrol party this morning
, there was no untoward incident reported from the city, Superintendent of Police Manak Jain said.
Tension erupted between two communities after a place of worship was allegedly defiled on
September 2.
