India tightens rules on tax residency in crackdown on wealthy evaders – The National

  • Date: 16-Mar-2020
  • Source: The National
  • Sector:Economy
  • Country:UAE
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India tightens rules on tax residency in crackdown on wealthy evaders – The National

India tightens rules on tax residency in crackdown on wealthy evaders. The budget for the financial year, which begins on April 1, states that Indian citizens who were not paying tax in any other country would be considered resident Indians, making them liable for taxation.. A clarification was swiftly issued by the government the next day, explaining that "bonafide workers including in the Middle East" would not be taxed on the income they were earning in the country where they were working.. But the new rule does affect Indians who are trying to avoid paying taxes and is part of a wider strategy to crack down on tax abuse by tightening a system that has let many individuals fall through the net, experts say.. In a country with a population of more than 1.3 billion, Mr Modi said there are only 15 million people in India who pay taxes.. Mr Doshi says with the recent move in the budget, "it seems that the intention is to capture Indian citizens who have a significant business interest in India but plan their affairs in a manner that they remain non-resident and avoid paying tax on their