To avoid taxes in India, Dubai CA files a petitionMarch 20, 2021 17:42
To avoid taxes in India, Dubai CA files a petition:- Gaurav Baid, a Dubai-based non-resident Indian (NRI) who is a chartered accountant filed a petition before the Supreme Court of India challenging the Central Board of Direct Taxes (CBDT). A circular has been issued that did not provide any relief for NRIs on the issue of losing their NRI status. They are being taxed on their global income in the country. His lawyer Amish Tandon spoke to the media about the development. Gaurav Baid filed his first petition in January 2021 and he referred to the involuntary extension of the NRIs. He also filed a petition about the travel restrictions. There are talks that Gaurav Baid is at the risk of losing his NRI status as per the Income Tax Act of India.
The Supreme Court asked the CBDT to consider the issue and report back in three weeks. The CBDT said that there would be a relief for NRIs but it was never delivered. No relief measures were announced even after the representations to the Indian government. As per the rules of the Income Tax of India, NRIs can stay in the country for just 120 days every year after which they will lose the status of NRI and they become Indian residents. They will be asked to pay taxes as per their global incomes. NRIs from several countries are stranded in the country due to the travel restrictions of coronavirus. They are left in fear and are at risk of losing their NRI status.
The circular of CBDT on March 3rd did not address the problems faced by the NRIs. As per the current update, there are one lakh NRIs from tax neutral countries and they will be impacted now with the move.