Kiran VSA, Udupi

Finally a sensible decision. Govt of India can not tax this service / product as it originates from outside the India Territory. It must have been a mistake by a officer from Finance ministry.

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Steakabbab, Mangalore/Dubai

Mr. Wilfred Rego
What about the Indian businessmen who open an office in Gulf countries just to get a Visa and a NRI status to avoid income tax in India. The Low paid income and hard workers are not tax payers. They do not reach the income tax ceiling. Just do not point the fingers on those poor guys.

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Blaan Mendonca, USA

Wilfred,
I have worked 20 years in Middle East. I have worked indoor and outdoor. I know how it works. I have seen the entire transformation from the desert to the metropolitan cities. People who are earning less are not tax payers, but people who are eligible are supposed to pay tax. You are talking about those hard working laborer and helpers. What about the other categories of people who make those laborers to work hard, threaten them of canceling their visas and terminating their jobs. They enjoy the fruit of those hard workers effort. They carry a big pay check. Does that sound good to you.

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Wilfred Rego, Siddakatte / Oman

Mr. Mendonca USA , Before commenting just think that most of the people working in Middle East are sacrificing their life withour family members and working conditions are harsh such as climatic conditions stress , work load. It is not justifiable to tax the NRI . It is not like USA or like other western countries. More NRI means good for Indian government that means liability less to provide the employment and social security etc.

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Blaan Mendonca, USA

Charles,
India is totally dependent on foreign products either produced through collaboration or imported. I would suggest you to go and visit companies like Reliance, Kirloskar, Bajaj, Tata, Airtel, Vodafone, Hinduja and see the reality. Just open your eyes and see the Indian roads filled with imported vehicles. Open your palm and check you have imported cell phone. Do you think all these companies will run away. It is a country with over one billion population.

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Charles D'Mello, Pangala

Blaan Mendonca, USA...Please note that all guy's in the middle east pay tax as per the law of the land. If there is no tax they dont pay..!!!Issue is simple. Are you paying more tax than required by the government of U.S...?? One of your comment you mentioned that FII money is where Indian goverment is relying on. It is wrong...FII investment is volatile and can be fully relied on.If someone farts loudly in India, they think that it is a bomb blast and very next moment this money vanishes from India...!!!???

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Blaan Mendonca, USA

Oliver,
It is not the question of double taxation. It is just about tax. If an American, Chinese or Canadian works in Gulf countries or any other part of the world, the income is taxable in their respective countries, even though it is overseas earned income, but if an Indian works in Middle east or Gulf countries he is not paying income tax either in gulf countries or In India for the overseas earned income as NRI. Then where is the question of double taxation for Indians working in Gulf countries or Middle east countries where there is no official income tax. If an Indian works in America, Canada, or Germany, or Australia then he will pay income tax in that country where he has earned.

These countries tax you for the income earned and he or she will not pay tax in India as a NRI. Then the question of double taxation arises. Therefore there are treaties signed in such countries to pay tax in one country. And also if a person who is a citizen of America or Canada or Australia has a Overseas Citizenship of India then the tax is paid in one country where he or she is citizen for the income earned in his or her homeland as well as overseas India or Gulf countries, it does not matter.

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Blaan Mendonca, USA

Lina,
Did you forget the import bill, and the trade deficit. India's trade deficit is seen at $185 billion in the 2011/12 fiscal year on higher crude import bill, the trade minister said citing provisional data, which may worsen the country's current account balance and further weaken the rupee. Exports top $300 billion. Imports jump 38.2 pct to $485 bln, provisional data shows. Indians working in Gulf countries or Middle east countries do not pay taxes in any country because in these countries there is no income tax, but Indians living and working in all the other countries or other parts of the world pay taxes according to the law of the land where they work and earn. You just do not understand the subject. The remittances sent to India other than gulf countries or Middle east countries are already pre-paid taxes. Because the income tax is already paid in their respective countries where they live and work.

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Charles D'Mello, Pangala

Blaan Mendonca, USA....your staemet that India does not need from NRI's is wrong...!!!??? When India had foreign reserves, the interest rate on NRI money was 2.7%....and now it is a par with Resident accounts....at times it was more than resident accounts...!!!???? his itself speaks whether India needs money from NRI's or Not....I am not a financial expert but a little common sense will make learn this. Can anybody dispute...???

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nris living away from a real home, jeddah

Nris are shedding their real life,staying away from home,many as singles.u ppl dont see this,u should be ashamed of putting taxes on their nri income,which they totally spend in india.
Working in india u get a-z benefits.what nris gets.nothing,but tears.

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Lina, Mangalore / Kampala

Mr. Blaan Mendonca

With dues respect to you Sir....Ignorance is not bliss. NRI remittance into India is of the order of USD 65 Billion annually. This is nearly 3% of India' GDP. Your mention of India' foreign exchange reserves comprises mainly FDI inflows is terribly wrong. They are just fair weather friends, who will transfer out the money in case they see problems ahead. You did not mention about the exports made by India, which brings in USD 298.2 Billion in 2011. Please comment with full knowledge on the subject.

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Oliver, INDIA

Blann,
I think you are deviating from the topic here. Its not about how the people earning money in India are affected by the devaluation of our currency ( Which of course is a matter of concern). Its about weather or not NRI's should pay taxes in India.

Don makes a very valid point here that NRI's are not going to pay taxes twice on the same income.

Also if you were wondering why do NRI's are allowed to use the amenities in India, the answer is we are "global citizens" as well. We don't go pay taxes in every country we visit, nor do visitors pay taxes for using the roads in India.

Another point to note here is that once an NRI settles down in India, he has to make a declaration that he now resides in india and his has to pay taxes on the money he has. This declaration has a time frame of 3 years.

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Blaan Mendonca, USA

Don and Mark
Yes, I do pay taxes for the income earned in United States as well as income earned in overseas countries including India according to the law of the land. Only people of few countries in the world who are working in Middle east do not pay taxes in their homeland. India does not need foreign currency from remittances. India receives foreign currency from direct investment from foreign countries. Gone are the days when India had only 28billion foreign currency reserve in 1991 during the collapse of the Berlin wall and the Pokran Test. India had a total reserve of 331 billion dollars in January 2012 and it is now 290 billion dollars after the devaluation of Indian currency by 14 percent within a short period of two months. Foreign currency goes up and you get the extra cash to send it to India what about the people living and working in India, what happens to them when the currency is devalued.

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Mark, Udyavara

According to Blann, "all Indians are equal and have the responsibility to share their resources and develop the country".

Please, I wish to get the share of the SWISS bank accounts. Can you help me?

Your dirty tax money are hoarded in SWISS banks. That's the value of your tax money. Secondly, apart from gulf states, all pay taxes in a worthy manners. Most of it returned to the citizens in amenities. Check the road tax that you pay per vehicle and the roads in INDIA.

Don't think people run rackets in the gulf to get money nor you have actual money trees whereby people out here collect them in baskets by shaking them.

It is easy money out here rather than the blood & sweat money in the gulf states.

What services govt of INDIA doing to tax NRI remittances? It is only enjoying the benefit of that hard earned foreign currency. Ask this to the earnest President, while all his life in finance, if he ever paid for his toilet tissues (if at all he uses). It's people money more than his income where a paise in not shelled.

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Don Amnon, Lower Bendoor, Mangalore

Hello Blaan,

Stop your philosophy.

Who told you that NRI are not paying taxes...?? All the countries in world collecting income tax on salaries (except GCC) and everybody paying
Secondly now GCC countries also imposing and collecting indirect taxes. There is agreement between Republic of India and other countries to avoid double taxation.
Are you ready to pay Income tax to US Govt as well Indian Govt....?????

According Central board of Direct taxes, the person residing & earning outside India is not taxable

Regarding discrimination – Our so called peoples representative ( MP’s ) are getting tax free salaries/allowance / Perks.

Jai ho India.

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R.J.F, Kallianpur

I am a retired man. My daughter sends me money sometimes from U.S.
Is this taxable.?
Please help.

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Pavan Kumar, Mangalore/Abu Dhabi

thanks Daji for timely information and eliminating the worries of NRI'S.

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Blaan Mendonca, USA

Indulging in hawala is a criminal offence and attracts severe penalty.

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Blaan Mendonca, USA

Indians working abroad are considered as Non-Resident Indians and hold Non-Resident Bank Accounts. They do not pay taxes to the Government of India. Non-Resident Indians do not pay income tax and they use all the facilities and amenities in India, Resident Indians pay taxes. Resident Indians work hard and earn less income compared to Non-Resident Indians but why Non-Resident Indians do not have to pay taxes. Non-Resident Indians own property and business in India, they have investments in India. This is a pure discrimination by the Government of India. Non-resident Indians are fighting to vote abroad in Indian elections without paying taxes. All Indians are equal and have the responsibility to share their resources and develop the country.

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An Indian, Europe

With reference to J Dai BVR. His comments are totally illogical and expresses his ignorance. He needs to get his brain tested. Sorry this is not personal.

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John, karkal/Dubai

J Dal,
First of all please read the RECKNOR and understand Income Tax rules of India. You will get an idea as to what is the meaning of NRI, NRO and Resident of India. Secondly You are putting across the comparision - NRI's earn money abroad and sends in to Indian banks, saves tax vs Indians earn money in India and sends out to swiss bank . "please try to understand that NRI's are sending money not to evade tax in the land where they earn. However, Indians who sends money to swiss is mainly to evade tax in thier homeland.

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J DAl, BVR

1.NRI working in gulf countries and savings are sent to India and indian govt assures them the tax exemption...
2.Idian buisinessman earns money and send their money to swiss bank and swiss bank offers them tax exemption..

Arab govt never has problem till date money going to india from their land

But why indian opposition including anna team and his supporters are having problem that money in swiss bank is black money

What is the difference, indians earning money in gulf and sending to indian banks which is tax exempted and indian buisinessmen earning in india and senging to swiss bank for tax excemption???

Indians working in gulf and doing buisiness sending their saving to indian bank for tax excemption is it not for arabs to consider india is tax heaven for indians?

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abdul sathar habiballah, belapu/Jeddah K.S.A

NRI people not minting a note in the gulf country, they have to work hard under the hottest and coolest climate which is un bearable to poor earner who is working under agriculture and other building construction. If Govt charge them taxes they will suffer from their small salaries to voercome their ROTI KAPDA AUR MAKAN and education of their children.

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Glen, Dubai-Mangalore

Quick actions just in Time, cause if Taxation starts its stupid idea, all will invest in foreign banks and India will not develop.Same way Amendment is needed for Customs Import / Export Rules and Regulations....Light a Lamp so that the concerned see the defective system for improvements which earn foreign revenue and India will prosper with income /gold flow from NRI.

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Charles D'Mello, Pangala

If they start taxing NRI's...then Hundi business will start. Atleast now they can get foreign currency without any problem, because poor gulf workers has to send money to their loved ones for daily expenditure and inturn India gets foreign currency. If they start taxing then they can get nothing no tax and no foreign currency also.

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praveen kumar pinto, mangalore

THANK YOU DAIJIWOLD FOR THIS NEWS.

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Anilkumar, Mangalore

On one side, the Govt is facing a problem of foreign exchange reserves going low. On the other hand, harrassment of NRIs continues. Wherever there is a chance to squeeze the NRIs, no one leaves the chance. Why should the a NRI senior citizen be deprived of 1/2 % higher interest rate for NRO accounts? Why should the benefit of special income tax slab rate for senior citizens be not applicable for NRI? Why should the benefit of tax relief for investment in PPF, NSC, etc. under 80C be not applicable for NRI? Even private organisations feel free to overcharge NRIs for any service. What is th fault of NRIs if they work outside the country for a living? Does any one realise how much personal sacrifice one has to do for this?

A NRI leaves his family alone, forgoes all social life, and spends the best part of his life abroad to bring in foreign exchange for the country. But no one realises all this. They only think that NRI has more money to spend and hence squeeze him as much as possible.
No doubt, many NRIs try to keep their money outside the country, educate children in Western countries and try to even emigrate to othe countries.
High time, the Govt gives due respect to NRIs.

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Lydia Lobo, Kadri

Thank you DW for this wonderful news.

Imposing tax on remittances on Indians abroad is foolishness because such move would boost hawala shipments.

One more step the government must take is raise the amount of gold a passenger can carry. Obviously the gold brought in by Indians becomes assets in India which the government can purchase in case of emergency instead of going for international loans. Its all in national interest instead of harassing passengers at the airports.

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