Taxation policy updates are the alarming bells set for the tax payers. Non-residents of India used to find them chill wind to encounter with. Over the years, scenario has been changed. Relaxation in stringent taxation policies is introduced. This is done to get migrants head around NRI investment in various sectors, such as real-estate, housing, finance and technology.
Relaxation in reporting & certification for NRIs
The revenue Department of India has revised its taxation policies for the year 2016. The migrants were asked to produce CA certificate for remitting funds to the abroad and many more such payments. Now, they can take a sigh of relief. Finance Minister has declared that relaxation in reporting and certification for NRI investment by April 2, 2016 is introduced.
Why compliance is introduced?
Compliance: As per finance minister of India, compliance will be activated to blur the line of complexities between the burden of compliance and information related to the tax-payer NRI. But here is one condition applied. The relaxation can be executed only when an indigenous entity or domestic entity pays off to NRI.
No requirement of filling Form 15 CA & Form 15 CB
Light should be shed upon the announcement that the two forms of filing remittance, i.e. Form 15 CA and 15 CB, will not be the mandatory requirement to be filled. The foretold forms did not need stamp of the Reserve Bank of India’s approval.
List of ‘No CA certificate required’ extended
Few of the remittance or payment or NRI investments are exempted from showcasing CA certificate. The last list had 28 items included in it. But now, it is elongated upto 33. Payment for import will also be a part of this listing.
What income tax rule states?
As per income tax rules, Chartered Account (CA) certified certificate is an essential document. It certifies that the payment received by the NRI from an Indian entity is taxable. Here, two points are to be considered intensely. First, the payer should be India’s citizen and the second is that the payable amount should exceed the limit of INR 5 lakh.