India tightens rules stating tax residency in a crack down on wealthy evaders – The National

India tightens rules stating tax residency in a crack down on wealthy evaders – The National

India tightens rules stating tax residency in a crack down on wealthy evaders. Government aims to catch up with people who arrange their affairs in such a fashion that they are not liable to tax in any country or jurisdiction during a year. 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 .... 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.. The arrangement is typically employed by high-net-worth individuals to avoid paying taxes to any country or jurisdiction on income they earn.". 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