New Income Tax Act: Drive against black money to set new hurdles for expats

Discussion in 'Economy & Infrastructure' started by Vishwarupa, Apr 9, 2012.

  1. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    NEW DELHI: The government's zeal to unearth black money could result in thousands of expatriates and their families having to provide details of assets held overseas, a requirement that many experts say could deter foreigners from working in India whose economic growth has attracted global talent in areas ranging from deep-sea engineering to movies.

    The Central Board of Direct Taxes, or CBDT, has brought out new tax forms for the current fiscal that require all "residents" to provide information about assets located overseas even before Finance Bill 2012, which mandates these disclosures, has been passed by Parliament.

    Under the Income Tax Act, the term 'resident' is divided into two categories: 'ordinary resident' and 'resident but not ordinarily resident.' Most expatriates fall under the second category. Those 'not ordinarily resident' do not have to pay tax on their global income, but the new forms may require them to disclose their global assets, a burden some experts say is excessive.

    "These changes are likely to create genuine hardship for the expatriate employees who come into India for shorter duration and qualify to be not ordinarily resident in India," says Kuldip Kumar, executive director, PwC.

    A finance ministry official said the disclosures are aimed at resident Indians. The intent of the legislation is that their global income should be taxed in India, he said.

    But, experts say there is an ambiguity and it needs to be clarified. "If one goes strictly by the language of the forms, the disclosure should apply only to residents, but the CBDT needs to clarify this explicitly," said Kumar.

    The disclosures include details of bank accounts, financial holdings, immovable property, other assets and details of any foreign account in which the taxpayer has signing authority.

    The family members of expat workers will also need to file I-T returns in India if they own the overseas assets mentioned in the form.

    The disclosure seems more onerous, tax experts said, in view of another provision in the Finance Bill that will allow tax authorities to open tax assessments going back 16 years if they detect any concealment of foreign assets.

    According to the new forms, even Indian residents holding signing authority for the foreign accounts of their employer will need to disclose overseas assets.
    http://economictimes.indiatimes.com...w-hurdles-for-expats/articleshow/12587198.cms
     
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  3. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    Dear Mods,

    Can we have sticky thread to discuss Black Money as this is worth a total of US$1.5 trillion. :cool2:
     
  4. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    Blackmoney: Government deputes 7 IRS officers for Income Tax units abroad

    NEW DELHI: The government has deputed seven senior IRS officers to officiate as First Secretaries at the newly created Income Tax overseas units in countries like the US, the UK and Germany, as part of its efforts to curb the problem of blackmoney and illegal funds stashed abroad.

    The Income Tax officials, having a tenure of three years, will function from the Indian Missions in Washington DC (the US), London (the UK), Berlin (Germany), Paris (France), The Hague (Netherlands), Abu Dhabi (the UAE) and Cyprus (Nicosia).

    The deputation of an Indian Revenue Service (IRS) to the eighth country -- Japan -- will also take place soon, official sources said.

    Finance Minister Pranab Mukherjee during his Budget speech had made a big allocation for setting up these I-T overseas offices.

    While the initial budgetary allocation for these units was Rs 2.41 crore in the last fiscal, it has been raised to Rs 18.20 crore in the current year.

    "The officials deputed are adept at handling tax evasion cases and international tax treaties and will also help the department liaise with authorities of these countries in tax cases including various high-profile cases which the I-T is currently investigating," a senior I-T official said.

    The officials at these units will also help investors from abroad understand Indian tax laws and procedures so that they can make informed decisions, the official said.

    The units would also obtain information on tax and financial data of investments made by individuals and institutions in these countries and facilitate any data on investment or routing of money in the country and vice-versa.
    Blackmoney: Government deputes 7 IRS officers for Income Tax units abroad - The Economic Times

    Its an Eye wash, IRS Officials are not going Swiss!!!!! Cong would have chosen only those IRS who are close to the politicians for sight seeing.
     
    Last edited: Apr 12, 2012
  5. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    Blackmoney: Government deputes 7 IRS officers for Income Tax units abroad

    NEW DELHI: The government has deputed seven senior IRS officers to officiate as First Secretaries at the newly created Income Tax overseas units in countries like the US, the UK and Germany, as part of its efforts to curb the problem of blackmoney and illegal funds stashed abroad.

    The Income Tax officials, having a tenure of three years, will function from the Indian Missions in Washington DC (the US), London (the UK), Berlin (Germany), Paris (France), The Hague (Netherlands), Abu Dhabi (the UAE) and Cyprus (Nicosia).

    The deputation of an Indian Revenue Service (IRS) to the eighth country -- Japan -- will also take place soon, official sources said.

    Finance Minister Pranab Mukherjee during his Budget speech had made a big allocation for setting up these I-T overseas offices.

    While the initial budgetary allocation for these units was Rs 2.41 crore in the last fiscal, it has been raised to Rs 18.20 crore in the current year.

    "The officials deputed are adept at handling tax evasion cases and international tax treaties and will also help the department liaise with authorities of these countries in tax cases including various high-profile cases which the I-T is currently investigating," a senior I-T official said.

    The officials at these units will also help investors from abroad understand Indian tax laws and procedures so that they can make informed decisions, the official said.

    The units would also obtain information on tax and financial data of investments made by individuals and institutions in these countries and facilitate any data on investment or routing of money in the country and vice-versa.
    Blackmoney: Government deputes 7 IRS officers for Income Tax units abroad - The Economic Times
     

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