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What Does Budget 2012 Mean To NRIs?

After the whole financial budget of 2012-13, there are some points has been noted down for the Non-Residential Indians (NRIs). The government will now allow the qualified foreign investors access to the Indian corporate debt market.

NRI - Non Resident Indian

NRI - Non Resident Indian

This proposal when implemented in the market, it came up as the positive sign for the country’s shallow bond market and also opens up a lucrative avenue for foreign individual investors who are interested in contributing in the nation’s growth rate.

In the papers the NRIs are allowed to invest in the Indian Corporate Bonds, but during investing money the NRIs need to have special permission from the Reserve Bank of India. Another measure is taken that to introduce mandatory foreign asset reporting; income tax body to have powers to open previous returns of up to 16 years to check for tax evasion. This measure is in the list, in order to decrease the transaction of the foreign assets and needless harassment for the NRIs who have returned to India after a long time.

The Direct Tax Code (DTC) which was expected to be implemented from April 2012 has been deferred for now. This might become a level of relaxation for the NRIs because there are some harsh rules in the DTC. The NRIs will become residents of the country, if the NRI is living in India for more than 60 days, or a year or 4 years prior to the financial year and would be liable to pay taxes on their global income.


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