Contrary to previous budgets, this year NRIs have received their fair share of incentives. The foremost is the relaxation announced on Double Taxation. Finance Minister Smt. Nirmala Sitharaman pointed out that NRIs faced issues related to their accrued incomes in their foreign retirement accounts mainly due to a mismatch in the taxation periods. The new budget proposes rules for removing the hardship of double taxation. The income from a foreign retirement benefits account will not be taxable on an accrual basis as it is already taxed by the foreign country at the time of withdrawal or redemption. The law will take effect from April 2022 and will be applicable to the assessment year 2022-23 and subsequent assessment years.
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Another major announcement is that NRI’s can set-up One-Man Companies in India. This will boost cash flow and NRI talents into the Country. Yet another mention was regarding the reduction of the residency limit from 182 days to 120 days.
To read more kindly visit https://www.hindustantimes.com/budget/budget-2021-relief-for-nris-facing-double-taxation-issue-on-retirement-accounts-101612171507566-amp.html
