Come April 2012 and a new taxation law will make things slightly more difficult for those Non-Resident Indians (NRIs) who spend more than 60 days a year in India. They will need to make a disclosure of their global income if their stay exceeds the 60-day limit. NRI associations are up in arms against the decision and say the move will estrange the community from their motherland, apart from weaning away investments made in India in the form of bank deposits by many such persons settled abroad.
The government, on its part, wants to bring exclusively rich NRIs who spend months in India doing business and then evade paying taxes. At present, NRIs can spend up to 182 days in a year in India without being taxed. If they exceed the 182-day limit, they are considered ordinary citizens for levy of taxes.
Influential NRI associations in countries like the United States and Canada, however, are not willing to give in so easily and are lobbying to get the 60-day limit waived. A delegation comprising members from associations representing different communities residing in the United States are due to visit India in January 2011 to meet senior ministers and convey their problems over the changing taxation laws and possible relaxations.
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