r2i forum

ref: http://economictimes.indiatimes.com/quickiearticleshow/6733456.cms

[QUOTE]
Non-resident Indians (NRIs) visiting India, will need to be more vigilant, post the DTC regime. Under DTC, if their stay in India exceeds 60 days during a year and 365 days for the past four tax years, then they may be considered as residents of India.

Currently, they become residents only when their stay exceeds 182 days.

Once they become a resident, they may have to pay tax on their global income , if their stay in India for the past seven tax years exceeds 729 days and if they are residents in two out of the past 10 tax years. In a nutshell, NRIs run the risk of triggering worldwide taxation soon if they spend a significant time in India.

The DTC proposals relating to individual taxation have undergone significant change since the DTC was proposed in August 2009. One will really need to wait for the final bill, which will become operational from April 1, 2012.


-------------------

Simply if you spend more than 60 days in India, ( it could be for business/pleasure reasons), you become resident of India.

Many Indians travel back and forth from US to India for business reasons. Families easily spend more than 60 days on vacation during summer time. Some time you have to make two trips in one year.

This is bad indeed. NRI groups should object to such taxing provisions.

Thanks for the informative post RRK.

Do you know if India will honour Foreign Tax Credit? With dual taxation treaty between USA and India, I would assume they would.

This however puts an extra load of paperwork in our already busy lives...

I think this law might be to bring under tax bracket a set of people who perform on/off duty offshore platform or in remote deserts. they typically work on 6 weeks on duty and 2 weks off. there are other combinations 4/4; 8/2; 9/3 etc. their residence is in india, family is in india and they work in remote locations. they typicaly do not pay tax in th country where thy work (middel east, africa offshore etc).

i know plenty of such people and if they are taxed in india they will be come under highest tax bracket. they were getting best of both which would be curtailed.

smartfool;339241I think this law might be to bring under tax bracket a set of people who perform on/off duty offshore platform or in remote deserts. they typically work on 6 weeks on duty and 2 weks off. there are other combinations 4/4; 8/2; 9/3 etc. their residence is in india, family is in india and they work in remote locations. they typicaly do not pay tax in th country where thy work (middel east, africa offshore etc).

i know plenty of such people and if they are taxed in india they will be come under highest tax bracket. they were getting best of both which would be curtailed.

Add Merchant Navy to the list..

Merchant Navy employees pay no tax in India. They pay no tax in any country (provided they are on the ship for more than 6 months in the year)

What if only wife and kids spend longer time in India but not the husband?

My Roots;339354What if only wife and kids spend longer time in India but not the husband?

India does not have a system of filing jointly. Wife will be considered resident. Husband will not be affected. (lucky guy)
_____________________________
No, one does not need to divorce.

RRK, I dont think this is bad. I read somewhere that many businessmen are increasingly taking residency in places like Singapore and filing returns in India as NRI, under a double taxation avoidance agreement with Singapore, which results in significantly lower tax rates. Such people have majority of their business in India and spend several months in India (ofcourse, less than 182 days in a year ! ) but exlploit current tax provisions. This change is directed at such people. I think genuine NRI's (there may be a few exceptions) will not be effected by this change.

avasanth;339364 This change is directed at such people. I think genuine NRI's (there may be a few exceptions) will not be effected by this change.

you mean they are not required to pay taxes :) it maybe like airport security, genuine NRIs still need to pay taxes if they stay more than 60 days unless you define genuine NRIs as people who stay in india for less than 60 days :)

laks0;339389you mean they are not required to pay taxes :) it maybe like airport security, genuine NRIs still need to pay taxes if they stay more than 60 days unless you define genuine NRIs as people who stay in india for less than 60 days :)

A non-resident alien is classified as a resident alien for tax purposes if they were physically present in the U.S. for 31 days during the current year and 183 days during a three-year period that includes the current year and the two years immediately before that.

Everybody is the same.

dbs;339394A non-resident alien is classified as a resident alien for tax purposes if they were physically present in the U.S. for 31 days during the current year and 183 days during a three-year period that includes the current year and the two years immediately before that.

Everybody is the same.

only if you dont have GC or USC, in which case you will never be a non-resident alien unless you renounce those. India is better in that regard, it doesnt charge a premium for its citizenship or residency :)