NRIs are expecting this budget to focus on tax reforms as they face difficulty in claiming tax refunds if they are not having a bank account in India. Currently, there is no regularised system for direct remittance of making a refund to a foreign bank account of an NRI.
“After the great and bold step of demonetization, we are expecting a bigger packet from Finance Minister Arun Jaitley. As NRI, this year, I am expecting better and NRI friendly budget from Mr Jaitley. We are keeping our fingers crossed for getting a green signal for direct remittance of refund amount to the foreign bank account of the NRIs from Mr Jaitley. If not so, we are at least expecting a more organised and systematic approach towards the clearance,” says Gorav Aggarwal, Founder and President, Lovevivah.com.
Currently, TDS on Sale of Property is are not applicable to an NRI who wants to sell his property. NRI cannot avail tax exemptions if the selling of the property is made to some foreign company. The criterion for sale of an immovable property should be sold to Indian residents or companies, or other NRIs or PIO’s. For selling the same an NRI has to go through various documentation process like having a certificate of lower tax deductions or non-deductions. If the NRI is eligible for LTCG, then he can claim for refund by filing ITR.
“Besides, we are also hopeful to get some relaxation in Property Tax laws, and Mr Jaitley should also clear the ambiguity on the sale of property in India, which is very complex. We are really excited and have high expectation from 2017 budget,” says Aggarwal.
You may also watch:
After demonatsation, various start-up companies were apprehending on how the customer would behave post demonatisation. Although people faced problem in withdrawing cash but it was good to notice now that thanks to demonatisation, a vast majority of India’s youth and middle and lower class, hereto unknown to the E-commerce market has now become regular online shoppers which can give a way to foreign direct investment in India.
“Post demonetization when the exchange of money in India got disrupted, as an NRI also being a Co-Founder of a startup, our biggest expectation from this year’s budget is lower tax rates, with the following reliefs:
- An electronic system to not only file tax but also get refunds and other facilities, so that a middleman required in India for the same is averted.
- Alternative sources to TRC, or Tax Residency certificate, which should be obtained from the country of residence. Currently, this being mandatory puts pressure on people residing in Tax-free countries.
- Taxation at par with the resident citizens.
- Clearer property taxes.
You may also watch:
We expect that in the new budget there would be more incentives for this newly added shoppers to make them permanently stick-on to online shopping rather than follow a more traditional shopping pattern.
“Moreover in order to weather the setback of a sluggish market post demonitisation , we as a start-up would expect some tax relief and other fiscal policies that would directly impact and strengthen our financial position,” says Rosmin Kunnathottathil, Co-Founder, The Lingerie Store(TLS).
According to the I-T law, if the income earned is beyond a certain limit in a financial year then a resident Indian is required to pay TDS on income only. In the case of NRI, there are no such exemptions, there TDS is deducted as per the NRI tax slab under I-T Act.If the government wants to increase foreign investments then there is a need of reform in tax exemption.
“Another major area of hope as a start-up is that Indian Government would come improve its ease of doing a business ranking by introducing new policies and correcting the existing ones, thereby making the Indian start-up market more enticing for foreign investments,” say Kunnathottathil.