HNIs, NRIs, expats face double taxation

Mumbai: Many Indians working in other countries or expatriates working in India may face taxes in both jurisdictions as Indian tax officials seem to be delaying taking any position or issuing required documents due to the upcoming faceless assessment system, said people in the know.The problem is acute for several non resident Indians (NRIs), high networth individuals (HNIs) and expatriates working in India. As per the current regulations an individual is not required to pay taxes in two jurisdictions and a tax treaty makes it crystal clear which country has the first right to tax him or her.Just that the individual has to pay tax at one location and provide proof of that to the tax authority of another country. This time around, say insiders, Indian tax authorities are delaying the process and are not issuing required certificates or even taking a position in certain complicated situations.“For many NRIs, expatriates or HNIs the delay in process from the Indian tax department means they have to either pay taxes in both jurisdictions or seek extension and run a risk of penalties in a foreign country. The situation this year is more complicated and hence we need more clarification based on the interplay between tax treaties and Covid pandemic related regulations,” said Mayur Shah, partner, EY India.

from Economic Times https://ift.tt/2Sv2gAZ